Tax Cuts and National Transformation Proposed
Written by Black Hot Fire Network Team on February 8, 2026
President William Ruto stated his administration is on track to reduce the cost of living, attributing current progress to prior economic decisions. He made the remarks Sunday during the official opening of the Africa Inland Church (AIC) Pipeline in Embakasi, Nairobi County, while also attending a prayer service.
Economic Stabilization and Recovery
According to President Ruto, the foundation for the current economic recovery was establishing economic stability at the beginning of his administration. He asserted that the economy is now stable, allowing the government to focus on development and providing relief to citizens.
Road Project Payments
Ruto announced that the government has settled all outstanding bills for road construction projects up to December 2025. This action, he stated, has freed up resources for new development initiatives.
Proposed Tax Reductions
To address the rising cost of living, the President announced plans to reduce the tax burden on workers. Proposals for these changes will be presented to Parliament next week.
Relief for Low-Income Earners
The proposed changes include full exemption from Pay As You Earn (PAYE) for those earning Sh30,000 or less. Employees earning up to Sh50,000 will see a 5 percent reduction in their tax deductions.
Impact of Tax Changes
Government projections indicate that approximately 2 million employees will benefit from these changes, increasing their disposable income and potentially stimulating consumer spending. The National Treasury anticipates this will help manage the rising cost of living.
Sacrifices and Future Goals
Ruto emphasized that these relief measures are a direct result of earlier sacrifices made by both the government and the Kenyan people. He reiterated his commitment to transforming Kenya from a Third World country to a First World country, stating progress is being made “one step at a time, one program at a time.”
