Teachers across Kenya could soon enjoy increased take-home salaries following President William Ruto's announcement of proposed changes to Pay As You Earn (PAYE) tax deductions.
The President has defended the Affordable Housing Levy, arguing that planned tax reductions could leave salaried workers with more money despite the existing 1.5 per cent Housing Levy deduction.
Speaking during the official opening of the Kenya Comprehensive School Heads Association (KECSHA) meeting in Mombasa on Thursday, November 12, 2026, Ruto announced plans to increase the monthly income exempted from PAYE taxation from KSh24,000 to KSh32,000.
Under the proposed changes, employees would not pay PAYE on the first KSh32,000 of their monthly taxable income, compared to the current threshold of KSh24,000.
The Head of State argued that the adjustment would provide meaningful financial relief to workers, including teachers, by reducing the amount of their salaries subjected to taxation.
"My competitors are sponsoring a debate saying they want to protect the payslip. We are proposing that we want to remove PAYE on the first KSh32,000 on what you earn," Ruto said.
According to the President, a teacher earning approximately KSh50,000 could enjoy an estimated KSh1,250 increase in monthly take-home pay under the proposed tax adjustments, even after accounting for Housing Levy deductions.
The announcement comes amid growing debate over statutory deductions appearing on employees' payslips, with many workers expressing concerns about the amount deducted from their monthly earnings.
Ruto maintained that the proposed PAYE relief would help employees retain more of their salaries while the government continues implementing its affordable housing programme.
Teachers and other public servants will now be keenly following developments to establish when the proposed tax changes will take effect and how the new threshold will affect their individual payslips.
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