President Ruto scraps pension taxes a bold and welcome move announced during Labour Day celebrations at Uhuru Gardens, Nairobi.
In a powerful address to thousands of workers and union leaders, the President declared that his government will eliminate all taxes on pensions and gratuity payments as part of sweeping economic reforms.
“We are proposing to remove all taxes on pensions and gratuity so that our workers can retire in peace and dignity,” said President William Ruto, sparking applause across the crowd.
This major policy shift, embedded in the Finance Bill currently before the National Assembly, aims to honor the service of Kenyan workers and safeguard their post-retirement life.
The announcement reinforces President Ruto’s broader agenda to deliver economic justice and enhance the financial security of citizens who have contributed to national development.
The President Ruto scraps pension taxes policy is part of a wider framework to stimulate economic growth, improve government efficiency, and position Kenya as a globally competitive economy.
The reforms, according to Ruto, have already started fostering a stronger savings culture nationwide.
Additionally, to strengthen education, President Ruto revealed that the government plans to recruit 20,000 new teachers to improve classroom outcomes and reduce the teacher-to-student ratio in public schools.
On foreign policy, the President clarified that his recent trip to China was not a borrowing mission but rather a strategic engagement to expand infrastructure like the Standard Gauge Railway (SGR) without increasing Kenya’s debt burden. “These are partnerships based on innovation and mutual benefit—not burdening the country with more debt,” he emphasized.
With the President Ruto scraps pension taxes initiative, the government is showing its commitment to building a resilient, fair, and empowered society an inspiring step forward for all Kenyan workers.
