Ruto Proposes PAYE Exemption for Workers Earning Sh32,000 Monthly, Scraps Stamp Duty on Sh1 Million Land

President William Ruto has announced four new proposals targeting workers and young Kenyans, directing the National Treasury to place them before Parliament next week.

While addressing the Mashujaa Day celebrations in Eldoret, Ruto noted the first proposal would exempt Kenyans earning Sh32,333 or less a month from Pay-As-You-Earn income tax entirely.

The move follows earlier reports in June, which indicated the government was working on relief for workers earning up to roughly Sh30,000, itself an increase from the previous threshold of Sh24,000.

"For workers on modest incomes, every shilling saved means more money for food, transport, school expenses, and the needs of their families," Ruto said.

The second proposal would exempt land transactions valued at Sh1 million or less from stamp duty altogether, with progressive rates applying to higher-value deals.

Ruto, while at Kipchoge Stadium in Eldoret, said the change would help "reduce the cost of acquiring and transferring land, especially for citizens at the bottom of the pyramid," adding that it would strengthen every Kenyan's ability to own property.

Third, the government will pursue the legal and regional customs processes required to remove the 25 percent import duty currently charged on mobile phones.

"A mobile phone is no longer a luxury," Ruto said. "It is a classroom, a marketplace, a bank, and an office for many young Kenyans."

Fourth, starting January 2027, the National Internship Programme will absorb an additional 50,000 young Kenyans drawn from colleges, TVETs, KMTCs and universities, each receiving a monthly stipend during their placement.

Ruto said placements would run through a transparent, digital and merit-based system, with incentives built in to encourage private employers to offer work experience.

"Too many young people cannot secure employment without experience, yet cannot gain experience without employment," he said. "This program is intended to break that cycle."

The President said the necessary legislative, fiscal and administrative processes would follow, "with attention to sustainable financing, transparency, and effective implementation."