Kenya’s President William Ruto has announced new tax relief measures for low- and middle-income earners to ease the cost of living.

People earning KSh30,000 and below per month (approximately $233) will be exempt from income tax, while those earning up to KSh50,000 (about $388) will see their taxes cut to 25 per cent.

The current threshold for not paying tax covers only salaried workers earning KSh24,000 and below.

President Ruto said this means that one and a half million Kenyans will not pay any taxes, while another 500,000 will see their tax reduced by 5 per cent.

The proposed tax change aims to boost disposable income, support the middle class, and stimulate economic growth through increased spending and investment.