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President William Ruto has assured Kenyans that his government is now positioned to reduce the cost of living, crediting earlier tough economic measures for stabilizing the nation’s finances.
Speaking on Sunday at the official opening of the Africa Inland Church (AIC) Pipeline in Embakasi, Nairobi County, where he also attended a prayer service, Ruto said the economy is now strong enough to ease financial pressures on citizens.
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“We made sacrifices earlier, and today we are starting to see the results. Housing, health, and road projects are progressing. Now we can reduce taxes, and that is how we will transform our nation,” the President said.
He emphasized that government reforms are being implemented gradually but deliberately to ensure lasting impact.
“One step at a time, one program at a time. I am confident that we are steering Kenya from a Third World to a First World country,” he said.
Ruto explained that the current economic recovery stems from stabilizing the economy at the start of his administration.
“All we can do now is possible because we prioritized economic stability first. That was the biggest challenge we faced,” he said.
He noted that stabilizing the economy allows the government to focus on development and relief for ordinary Kenyans.
“Today I can confidently tell Kenyans that our economy is stable,” Ruto said.
The President further announced that all outstanding payments for road construction projects up to December 2025 have been cleared, freeing up resources for new development initiatives.
“We have settled all pending road project bills as of December 2025. This gives us the resources to drive further development,” he said.
To ease the burden of rising living costs, Ruto said the government plans to reduce taxes on workers, with proposals to be presented in Parliament soon.
“All proposals will be taken to Parliament next week as we move to reduce the tax burden on Kenyans,” he said.
Under the planned changes, low-income earners will receive significant relief:
- Those earning Sh30,000 and below will be fully exempt from income tax (PAYE).
- Those earning up to Sh50,000 will see deductions reduced by 5%, from 30% to 25%.
Ruto said the reforms would benefit around 2 million workers, putting more money in their pockets and helping to manage the rising cost of living.
“The relief is possible today because of sacrifices made earlier. Now, we are beginning to reap the benefits,” he added.
The National Treasury confirmed that the tax cuts will increase disposable income for low- and middle-income earners, boosting consumer spending and supporting economic growth.
