President William Ruto has announced four proposals aimed at easing living costs and expanding job opportunities in Kenya. The plans cover income tax, land purchases, mobile phone prices and youth internships. They were announced during Mashujaa Day celebrations in Eldoret.
Lower Taxes for Workers
Workers earning KSh 32,333 or less each month could be exempted from Pay As You Earn (PAYE) tax under the proposed changes.
“For workers on modest income, every shilling saved means more money for food, transport, school expenses and the needs of their families,” Ruto said.
The proposal is yet to be approved by Parliament. If adopted, it would leave eligible workers with more take-home pay.
Cheaper Land Transfers
Stamp duty could also be removed for land transactions worth KSh 1 million or less. Progressive rates would be introduced for higher-value transactions, under the proposals announced by the President.
The changes are intended to reduce the cost of buying and transferring land. Their final impact would depend on the rates and rules adopted.
Mobile Phones Could Cost Less
A 25 per cent import duty on mobile phones is also set to be removed through the required legal and customs procedures. Ruto said lower prices could help more Kenyans access digital services and employment opportunities.
“A mobile phone is no longer a luxury. It is a classroom, a marketplace, a bank and an office for many Kenyans, a gateway to employment,” he said.
The extent of any price reduction would depend on how the change is implemented and whether the savings are passed on to consumers.
50,000 More Internship Places
From January 2027, the National Internship Programme is expected to expand by 50,000 places for young people leaving universities, TVET institutions and the Kenya Medical Training College.
Monthly stipends are planned for participants. Placements are to be awarded through a digital, merit-based process. Private employers would also be offered incentives to provide work experience to young people.
“Too many young people cannot secure employment without experience, and yet they cannot gain experience without employment,” Ruto said.
Parliament to Consider Proposals
The President said he had directed the National Treasury to present the proposals to Parliament the following week. None of the proposed changes should be treated as fully implemented until the required legal steps have been completed.
If approved, the measures could affect workers’ take-home pay, land transaction costs, mobile phone prices and access to internships. Their eventual benefits will depend on the legislation passed, how the policies are carried out and whether the intended savings reach Kenyans.
