NAIROBI, Kenya – President William Ruto has lauded the Finance Bill 2025, describing it as “carefully crafted” and integral to the country’s economic growth.
Speaking during his Labour Day address at Uhuru Gardens, Ruto assured the nation that the Bill, which was approved by the Cabinet on Tuesday, is designed to stimulate economic growth, enhance competitiveness, and expand opportunities across Kenya’s businesses and workforce.
The President emphasized that the Bill’s provisions are tailored to offer targeted relief to both businesses and workers, aiming to foster a spirit of enterprise and productivity.
“In fact, its provisions are designed to offer targeted relief to both businesses and workers, and to support the spirit of enterprise and productivity,” Ruto said.
One of the major highlights of the Finance Bill 2025 is a significant change in how tax reliefs will be applied.
The President announced that, under the new framework, employers will be able to apply eligible tax reliefs and exemptions directly when calculating the Pay As You Earn (PAYE).
This marks a departure from the current system, where workers must claim tax reliefs through Kenya Revenue Authority (KRA) after filing their returns.
“This will increase efficiency and immediately benefit employees,” Ruto said, stressing that this change would provide workers with more immediate financial relief and reduce administrative burdens for both employers and employees.
President Ruto: This Finance Bill has been carefully crafted to stimulate economic growth, deliver efficiency and enhance competitiveness and expand opportunity.#LabourDay2025KE #LebaDei2025KE
Ruto also announced that Kenya would ratify two important International Labour Organisation (ILO) conventions to further protect workers’ rights.
ILO Convention 189 of 2011, which aims to safeguard the dignity and rights of domestic workers, and ILO Convention 190 of 2019, which seeks to eliminate violence and harassment in the world of work, will both be ratified by next year.
“This move is essential to ensuring we uphold international labor standards and provide better protection for all workers in Kenya,” the President stated.
While addressing concerns about recent salary deductions for affordable housing, health insurance, and pension schemes, Ruto urged Kenyans to consider the long-term benefits of these contributions.
He acknowledged that these deductions have somewhat minimized take-home pay, but emphasized their positive impact on workers’ futures, especially in securing better housing, healthcare, and pensions.
“We understand the sacrifices being made, but these efforts are crucial to ensuring a more secure future for every Kenyan worker. These investments in housing and healthcare are part of our long-term vision to build a more prosperous and equitable society,” he said.
In his Labour Day speech, President Ruto reiterated his commitment to improving the lives of Kenyan workers through both legislative and policy reforms.
His government’s focus on creating a workplace environment that supports both the growth of businesses and the welfare of workers aligns with his broader economic vision for the country.
