By Dorothy Musyoka
Kenya celebrated its 60th Labour Day with a strong reaffirmation of its commitment to worker empowerment, enterprise growth, and economic self-reliance.
The event, held at Uhuru Gardens National Stadium in Nairobi, was graced by H.E. President William Ruto and other senior government officials who addressed thousands of workers from across the country.
In his keynote address, President Ruto outlined bold new policy shifts designed to improve the livelihoods of Kenyan workers and safeguard the dignity of retirees.
“We are taking bold and measurable steps to make Kenya truly self-reliant by growing the economy, supporting enterprises and uplifting workers,” stated President Ruto.
Notably, employers will now be required to apply tax reliefs and exemptions directly at source when calculating Pay-As-You-Earn (PAYE), a move expected to immediately increase workers’ take-home pay by eliminating long delays.
“To boost workers take-home pay, employers will now apply tax reliefs and exemptions directly when calculating PAYE, eliminating delays for employees,” noted President Ruto.
In a further step toward fairness and economic justice, the government also announced that all pension and gratuity payments—across public and private sectors—will now be tax-exempt.
The President described this as a recognition of retirees’ lifelong contributions to the nation and a commitment to protecting their dignity in retirement.
“Further, all pension and gratuity payments public and private will be tax-exempt, honouring our retirees and protecting their dignity,” added the President.
This year’s Labour Day celebration came on the heels of a significant national achievement: the World Bank’s latest report ranked Kenya as the sixth-largest economy in Africa.
The President attributed this milestone to the resilience and productivity of the Kenyan workforce, alongside deliberate and stable economic policies.