President William Ruto has announced sweeping reforms aimed at enhancing the welfare of Kenyan workers, including the removal of all taxes on pension and gratuity payments. The declaration was made during the Labour Day celebrations held at Uhuru Gardens, Nairobi.
Speaking to thousands of workers and union leaders, President Ruto said the tax relief—proposed in the Finance Bill currently before the National Assembly—aims to ensure that Kenyan workers retire with dignity after years of service.“We are proposing to remove all taxes on pensions and gratuity so that our workers can retire in peace and dignity,” the President said, earning applause from the crowd.
President Ruto further stated that the Finance Bill contains several measures designed to stimulate economic growth, enhance government efficiency, and boost Kenya’s global competitiveness. He credited ongoing reforms for encouraging a stronger savings culture among Kenyans.
Meanwhile, as part of efforts to strengthen the education sector, President Ruto also announced that the government will soon recruit 20,000 additional teachers. The move is expected to significantly improve the teacher-to-student ratio and enhance the quality of education in public schools.
In response to recent speculation over his official visit to China, the President clarified that the government did not seek a loan. Instead, he said the trip yielded a strategic partnership that will enable the expansion of the Standard Gauge Railway (SGR) without incurring additional debt to the exchequer.“These are partnerships based on innovation and mutual benefit—not burdening the country with more debt,” he affirmed.
The announcements underscore the government’s broader strategy to build a resilient economy, empower the workforce, and strengthen public service delivery across sectors.
