Ruto Reveals Plan to Scrap Taxes for Kenyans Earning Up to Ksh30,000

President William Ruto has revealed plans by the government to exempt Kenyans earning up to Ksh30,000 from paying taxes.

Speaking on Thursday, May 28, Ruto said the government had identified alternative ways of raising revenue, making it possible to reconsider taxation on lower-income workers. 

"I did send a proposal to Treasury that because we have found a way to do many other things differently from how we have done it before, it's time for us to look at how we can slow down, especially the low-income earners, and remove some taxes from them," he said.

Ruto said the proposal would soon be taken to Parliament for consideration, adding that the current tax-free threshold of Ksh24,000 could be raised to Ksh30,000. 

Explaining the planned changes, the Head of State stated that workers earning below the proposed threshold would no longer pay taxes.

"We will be putting a proposal before Parliament to say that all the low-income earners, the people who earn up to Ksh24,000, will not pay any more. We are saying, in fact, that the category should be moved to anybody who is earning Ksh30,000 or less. They will not pay any taxes," he added.

Elsewhere, Ruto revealed that the current suppliers of fuel to Kenya under the government-to-government deal were concerned by the plan to build an oil refinery in Mombasa.

He stated that billionaire Businessman Aliko Dangote confided in him that he was under a lot of pressure from Kenya's current fuel suppliers.

Ruto added that the suppliers still wanted Kenya to source fuel from them, but partnering with Dangote to establish a refinery offered a long-term solution to the fuel crisis.

"I was talking with Mr Dangote yesterday, and he was telling me how much resistance has been built by the people we are buying fuel from now because they want us to continue buying their fuel

"But we have to make those decisions that will transform our country, and I want to tell you that some of the times, we have to forego temporary convenience for long-term transformation," he stated.

Ruto further dismissed claims that matatu operators were influenced with 'brown envelopes' to call off their strike after meeting him at State House, Mombasa.

He stated that he presented the leaders with facts about the fuel crisis and explained to them why the government could not subsidise the fuel beyond the current rates.

"I know many people say that they were influenced this way and that way. Maybe they were, but by the facts of the situation.

"I explained to them about how the country would go if we were reckless about subsidies. For a whole year, we had to pay between Ksh150 and 160 billion loan, which had been used for subsidies," he added.