Nairobi County Women Representative Esther Passaris has welcomed the government’s move to exempt earners below Ksh30,000 from income tax, saying it will bring relief to over a million Kenyans.

In a statement shared on X on Wednesday, February 4, 2026, Passaris said the policy will ease the cost of living and give low-income households more financial breathing space, adding that the move will make a real difference for low-income earners, helping them meet daily expenses without strain.

“Thank you, President William Ruto and CS John Mbadi, for the income tax exemption for earners below Ksh 30,000. This is real relief for over 1,000,000 Kenyans. For low-income earners, every shilling counts,” Passaris stated.

The legislator further highlighted the impact on the dignity of workers, emphasising that retaining more income will support households in meeting basic needs.

“This step will ease the cost of living and restore dignity by putting more money in the pockets of hardworking Kenyans,” she said.

Ruto announces tax cuts for Kenyans earning up to Ksh50,000

President William Ruto has announced plans to reduce Pay As You Earn (PAYE) taxes for Kenyans earning up to Ksh50,000, in a move aimed at easing the financial burden on low and middle-income workers.

Ruto outlined the proposed tax reforms, saying the government would forward the recommendations to Parliament for consideration.

“We would not be able to reduce taxes if we had not set the foundation right. And that is why we are going to Parliament. We are now saying that any Kenyan who earns less than 30,000 shillings will not pay any taxes,” the president said.

“Number two, we are saying any Kenyan who earns up to 50,000, we are reducing their taxes from 30 per cent to 25 per cent. 1.5 million working Kenyans will not pay any taxes. 500,000, another 500,000 working Kenyans will have their taxes reduced from 30 per cent to 25 per cent,” he added.

CS Mbadi on tax relief

Treasury Cabinet Secretary John Mbadi earlier supported the reforms, noting that they are designed to put more money in the pockets of low- and middle-income earners while stimulating the economy.

“Those salaried Kenyans, we have 3.5 million Kenyans earning salary. They are carrying the burden on almost everybody. It is not fair. We have decided I am taking proposal amendment to Bunge. I am not even waiting for Finance Bill. Anybody earning below 30,000 in this country should pay zero tax. Zero,” Mbadi said.

Currently, a worker earning Ksh50,000 pays 30 per cent in PAYE, amounting to Ksh15,000. With the proposed 25 per cent rate, the same worker would pay Ksh12,500, leaving Ksh37,500 before other deductions such as NSSF and NHIF. This would put an additional Ksh2,500 in the worker’s pocket every month, or Ksh30,000 annually.