Kenya's Ruto proposes no PAYE for earners up to KSh 32,333 a month and removal of 25% phone import duty

President William Ruto proposed on 20 October that Kenyans earning KSh 32,333 a month or less be exempted from Pay As You Earn (PAYE) income tax, that land transactions worth KSh 1 million or less pay no stamp duty, and that the 25 per cent import duty on mobile phones be removed.

He spoke at the Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County. Ruto said the proposals would be presented to Parliament "beginning next week", as quoted by The Standard. He said he had directed the National Treasury to present them to Parliament. The measures are proposals and are not yet law.

On income tax, Ruto said the government had prepared proposals to exempt Kenyans earning KSh 32,333 per month or less from PAYE. "For workers on modest incomes, every shilling saved means more money for food, transport, school expenses, and the needs of their families," he said, as quoted by the Kenyan news site Pulse Kenya.

On land, the National Treasury has developed proposals to exempt transactions valued at KSh 1 million or less from stamp duty, with progressive rates for higher-value transactions. Ruto said this would lower the cost of acquiring and transferring land, "especially for citizens at the bottom of the pyramid".

On phones, Ruto said the government would pursue removal of the 25 per cent import duty to lower the cost of accessing digital services, subject to the necessary legal and regional customs processes, Capital FM reported. "A mobile phone is no longer a luxury," he said, as quoted by Citizen Digital. He described phones as essential tools for education, banking, business and employment, especially for young people.

Ruto also announced an expansion of the National Internship Programme from January 2027 to take in 50,000 additional graduates from universities, technical and vocational education and training (TVET) institutions and the Kenya Medical Training College (KMTC). Interns would receive monthly stipends, with placements made through a digital, merit-based system, and the government plans incentives for private employers who offer young people work experience.