The Central Organisation of Trade Unions (COTU) Secretary-General Francis Atwoli has welcomed President William Ruto’s plan to exempt workers earning up to Ksh32,333 per month from Pay As You Earn (PAYE) tax.
Atwoli said the proposed exemption will leave workers with more disposable income, particularly those in the private sector, where the majority of unionisable employees fall within the affected income bracket.
In a statement following the President’s Mashujaa Day address in Eldoret, Atwoli urged Parliament to fast-track the proposal, saying it would address COTU’s longstanding calls for an increase in the threshold for tax-exempt earnings.
“Exempting this category of wage earners from PAYE is a huge step by the President to cushion these low-income earners from heavy taxation. This will go a long way in reducing the burden these workers have continued to carry in their working lives, putting more cash in their pockets,” he said.
The trade union boss also welcomed the President’s proposal to exempt mobile phones from 25 per cent tax, saying the move will support the growth of Kenya’s digital and platform economy.
He said lower mobile phone prices will create opportunities for young people seeking employment by making it easier for them to access digital platforms and applications through which they can earn an income.
Atwoli called on unemployed young people to take advantage of the proposed tax relief to explore opportunities in the digital economy and contribute to the growth of the sector.
He cited the International Labour Organization’s recognition of the platform economy as a source of employment and income opportunities for young people and businesses, as well as a pathway towards the formalisation of work.
“No doubt that it is against this background that the International Labour Orgainzation, ILO, observing that the platform economy has created opportunities for young people and business development,” said Atwoli.
