We can now reduce taxes and transform the nation; Ruto
We can now reduce taxes and transform the nation; Ruto
President William Ruto has assured Kenyans that his administration is firmly on course to lower the cost of living, saying the country is now reaping the benefits of difficult economic decisions made earlier in his tenure.
Speaking on Sunday during the official opening of the Africa Inland Church (AIC) Pipeline in Embakasi, Nairobi County, where he also attended a prayer service, Ruto said the government is now in a position to ease the financial burden on citizens after stabilising the economy.
“We made sacrifices earlier, today we are beginning to reap the benefits. Housing is going on, health is going on and our roads are going on. We can now reduce taxes and that is how we will transform our nation,” Ruto said.
He added that the government was implementing reforms gradually but deliberately to ensure long-term impact.
“One step at a time, one programme at a time. I am very confident that we have set our eyes on moving Kenya from a Third World country to a First World country,” he said.
According to the President, the foundation of the current economic recovery was laid by prioritising economic stability at the start of his administration.
“All the things we can do now are because we did first things first. We stabilised our economy. That was the biggest problem we had, the stability of our economy,” Ruto said.
He told worshippers that economic stability now allows the government to focus on development and relief measures for ordinary Kenyans.
“Today I can confidently stand before Kenyans and say our economy is now stable,” he said.
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Ruto further stated that the government has cleared all pending bills related to road construction projects up to December 2025, a move he said has unlocked resources for new development initiatives.
“We have now paid all the pending bills of road projects as of December 2025. We now have the resources to drive our development,” he said.
As part of efforts to manage the rising cost of living, the President announced plans to reduce the tax burden on workers, noting that proposals would soon be tabled in Parliament.
“We are taking proposals to Parliament when they resume next week because we are in the process of reducing the tax burden on Kenyans,” Ruto said.
Under the proposed changes, low-income earners will receive significant relief.
“All those earning Sh30,000 and below will not pay taxes on their income (PAYE). This is because our economy is now stable,” he said.
He added that employees earning up to Sh50,000 would also benefit from reduced deductions.
“Those earning up to Sh50,000 we reduce the tax by 5 per cent,” Ruto said.
Government plans indicate that earners of Sh30,000 and below would be fully exempt from PAYE, while deductions for those earning Sh50,000 would drop from 30 per cent to 25 per cent.
“A total of 2 million will benefit so that we can carry everyone along and we can begin to manage the cost of living,” Ruto said.
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