President Uhuru Kenyatta gifts low earners tax reprieve

Low income-earning workers this year, have received a late Labour Day present after the government exempted their bonuses and benefits from taxation.

6 May 2016

The move comes months after the government failed to increase their minimum wage during Mays’ Labour Day celebrations. Announcing the new measures on May 6th, President Uhuru Kenyatta said he had already issued a directive to the Treasury to effect the measures in the 2016 Finance Bill. He said under the Bill, low income workers would be exempted from taxation on any payments of bonuses, overtime and retirement benefits. “This will be done in a manner that does not place an additional burden on employers or increase the cost of employment,” he said. This, President Kenyatta said, will cushion low income workers as the government strives to improve the living standards of Kenyans.