- Low-income earners could get PAYE relief.
- Land transfers and mobile phones could become cheaper.
- Graduate internships could expand to 50,000 slots.
President William Ruto has announced plans to introduce tax relief for low-income earners, reduce the cost of land transfers and make mobile phones more affordable as part of measures aimed at easing the cost of living.
The President also pledged to expand the government’s graduate internship programme to accommodate 50,000 young people starting January 2027.
Speaking during the Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on Tuesday, October 20, 2026, Ruto said the proposed measures were intended to improve household incomes, widen access to digital services and create more opportunities for young people seeking employment.
Under the proposed changes, Kenyans earning a monthly salary of Ksh32,333 or less would be exempted from Pay As You Earn (PAYE) income tax.
Ruto said the plan would allow low-income workers to retain more of their earnings to meet essential household expenses, including food, school fees and other family needs.
The proposal, however, requires the necessary legal amendments before it can take effect.
The Head of State also announced plans to abolish stamp duty on qualifying land transactions valued at Ksh1 million or less.
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He said the government was considering a progressive stamp duty structure for higher-value land transactions, a move expected to lower the cost of property transfers for eligible buyers.
If implemented, the changes could make land ownership more affordable for Kenyans seeking to acquire lower-value properties.
In the telecommunications sector, Ruto said the government would pursue the removal of the 25 per cent import duty imposed on mobile phones.
He described mobile phones as essential tools for accessing employment opportunities and participating in the digital economy, arguing that reducing the tax burden could improve access to technology.
The proposal is expected to be pursued through the relevant legal processes before implementation.
On youth employment, the President said the government planned to increase the number of graduates admitted to its internship programme to 50,000 from January next year.
The initiative is intended to give university and college graduates opportunities to gain workplace experience as they prepare to enter the job market.
However, Ruto did not disclose the monthly stipend that participants would receive under the expanded programme.
The four proposals come as the country prepares for the 2027 General Election, with the government seeking to address concerns over household expenses, access to essential services and employment opportunities.
Their eventual impact will depend on the legal and administrative processes required to implement the tax measures and the rollout of the expanded internship programme.
By Jeff Kirui
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