Ruto plans tax exemption for low-income Kenyans

President William Ruto revealed that the Government will introduce a bill in Parliament to exempt individuals earning up to KSh30,000 from income tax obligations. During his address at the National Prayer Breakfast in Nairobi on Thursday, the President admitted that the tax waiver will result in a KSh40 billion reduction in revenue, but emphasized it as a crucial and innovative approach to protect low-income citizens from financial challenges. “We should explore means to ensure that all persons earning Sh30,000 and below are excluded from the tax system,” he stated. The yearly prayer gathering was graced by First Lady Rachel Ruto, Deputy President Kithure Kindiki, Deputy President’s spouse Joyce Kindiki, high-ranking government representatives, and international guests. President Ruto centered his remarks on national faith, referencing the Constitution’s preamble which recognizes God as the “God of all creation.” “Just as we trust in God, we must trust in ourselves and our nation. This is a remarkable country and we must have faith in it,” the President implored. Looking back at the devastating 2022 drought, the President remembered how the nation united in prayer at Nyayo Stadium in Nairobi. He pointed out that the consistent rainfall over the last three years has rejuvenated agriculture, enhancing maize, tea, and coffee industries. Regarding development progress, the President outlined his administration’s achievements, noting that negative media reports should not mislead Kenyans. “A journalist acquaintance informed me that newspaper headlines tend to be negative because negative news attracts readers. Newspapers operate as businesses,” he stated, reassuring the public that the headlines do not represent the true state of the nation. He continued: “Kenya is not, and will never be, a failed State. This nation is exceptional, and we have the responsibility to make it even better.” Keynote speaker Chris Rwakasisi, a senior advisor to Ugandan President Yoweri Museveni, delivered an inspiring account of his political career, his experience on death row, and his spiritual transformation. President Ruto praised Mr Rwakasisi’s impactful message, which resonated with the event’s theme of “forgiveness and reconciliation.” Reflecting on the theme, ODM leader Oburu Oginga praised the current Broad-Based Government as a tangible demonstration of national reconciliation. He highlighted that despite the intense 2022 political rivalry between President Ruto and the late Raila Odinga, the leaders prioritized national unity over their differences. “I never thought I would sit at the same table with President Ruto because we believed our electoral victory had been taken away,” Mr Oburu stated. “Political contests must not deteriorate into hostility.” Mr Oginga cautioned Kenyans against taking peace for granted, emphasizing that “peace is only appreciated once it is lost”. Looking forward, President Ruto assured the country that the 2027 General Election would be peaceful, free, and fair, warning those promoting division that their efforts would fail. Expanding to the African continent, the President called on African nations to aggressively mobilize domestic resources and reduce dependence on foreign debt. He mentioned that Africa possesses $4 trillion in pension funds and insurance schemes that could be utilized for development. “We must utilize our own savings rather than seeking resources from elsewhere. We need to think innovatively,” the President emphasized. He referenced Kenya’s recent accomplishments as evidence that Africa can achieve self-sufficiency, highlighting that the government has mobilized KSh650 billion domestically to support affordable housing projects. Moreover, he mentioned, no external borrowing was required to construct Talanta Stadium or the Bomas International Convention Centre. Furthermore, the universal healthcare initiative has been financed through local resources, with KSh150 billion distributed to healthcare facilities nationwide over the past 18 months. Regarding the recent transport strike, the President revealed that his meeting last week with public transport stakeholders in Mombasa extended for three and a half hours. He informed them that the administration had taken over a dysfunctional system burdened by nearly KSh160 billion in unsustainable fuel subsidy debt. The government, he stated, has protected consumers from recent price escalations by allocating KSh28 billion for price stabilization measures and waiving Value Added Tax in the last two months. “Without these measures, diesel would be priced at KSh273 instead of KSh232,” President Ruto clarified, noting that transport comprehended the actual circumstances and independently withdrew their planned strike. “Some claimed they were pressured to cancel the strike. Indeed, perhaps they were persuaded by the facts,” he observed. Concerning sustainable solutions to mitigate global fuel price fluctuations, the President indicated that he and regional counterparts are committed to establishing a domestic oil refinery. He announced that construction of the refinery will begin next year and will, among other functions, refine crude oil from Turkana County, which is already being extracted. President Ruto revealed that he has engaged in discussions about the project with Ugandan President Yoweri Museveni and Nigerian billionaire Aliko Dangote.