Nairobi — President William Ruto has announced plans to exempt Kenyans earning KSh30,000 and below from paying income tax, saying the proposal is aimed at easing the burden on low-income earners despite the expected impact on government revenue.
Speaking during the National Prayer Breakfast in Nairobi on Thursday, President Ruto said the government is preparing to take the proposal to Parliament as part of broader interventions to cushion vulnerable households from economic hardship.
"We can even find a way so that all those earning Sh30,000 and less are left out of the tax bracket," the President said.
He acknowledged that the move could create a Sh40 billion revenue gap but insisted the government was ready to pursue innovative approaches to support ordinary Kenyans.
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The annual prayer gathering was attended by First Lady Rachel Ruto, Deputy President Kithure Kindiki, Joyce Kindiki, senior government officials, lawmakers and foreign dignitaries.
President Ruto anchored his address on faith and national optimism, referencing the Constitution's recognition of God as the "God of all creation."
"As we believe in God, we must believe in ourselves and our country. This is a great nation and we must believe in it," he said.
The President recalled the severe drought experienced in 2022 and said national prayers held at Nyayo National Stadium preceded improved rainfall seasons that revitalised agriculture, particularly maize, tea and coffee production.
He also defended his administration's economic performance, arguing that negative media reporting does not reflect Kenya's actual progress.
"Kenya is not, and will never be, a failed State. This country is great and we have a duty to make it greater," he stated.
Oburu Oginga praised the Broad-Based Government arrangement as an example of reconciliation and national unity.
He said political rivalry should not translate into hostility, reflecting on the tense 2022 presidential contest involving President Ruto and opposition leader Raila Odinga.
"Political competition should not descend into enmity," Oburu said, while cautioning Kenyans against taking peace for granted.
President Ruto assured the country that the 2027 General Election would be peaceful, free and fair.
The President urged African countries to rely more on domestic resource mobilisation rather than external borrowing, noting that Africa holds nearly $4 trillion in pension funds and insurance savings.
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He cited Kenya's Affordable Housing Programme, Talanta Stadium and the planned Bomas International Convention Centre as examples of projects being financed locally.
According to the President, the government has already mobilised KSh650 billion locally for affordable housing without relying on foreign borrowing.
On healthcare, he said the government has disbursed Sh150 billion to health facilities under the universal healthcare programme over the past 18 months.
Addressing the recently suspended transport sector strike, President Ruto said the government inherited nearly Sh160 billion in debt arising from unsustainable fuel subsidy programmes.
He disclosed that the administration has spent Sh28 billion in fuel price stabilisation and tax relief measures over the past two months to cushion consumers.
"Without these interventions, diesel would be selling at Sh273 and not Sh232," he said.
The President dismissed claims that transport operators were pressured into suspending the strike, saying they were convinced after understanding the facts.
"Maybe they were influenced by the facts," he remarked.
President Ruto also announced plans to establish a regional oil refinery, with construction expected to begin next year.
He said the refinery would process crude oil from Turkana County and support regional energy security.
The Head of State disclosed that he has already discussed the project with Ugandan President Yoweri Museveni and Nigerian businessman Aliko Dangote.
