Kenya Ports Authority workers have expressed happiness with the removal of taxes on pension and gratuity in the Finance Bill 2025.
President William Ruto declared the pension and gratuity tax exempt in his speech during Labour Day celebrations in Nairobi.
“We are touched,” Paul Abisa, a former Dock Workers Union official, said on Wednesday.
Speaking at Pembe Za Ndovu, Abisa said the move recognises services and sacrifices senior citizens and workers have given the country during their employment tenure.
He said the government has intentions of ensuring retirement is met with dignity rather than distress.
“The head of state’s directive is making a major policy shift aimed at honouring contributions of Kenyan citizens and workers,” Abisa said.
The tax exemption is expected to start in the next fiscal year.
In Kenya, the mandatory retirement age for civil servants is 60 years but there can be exemptions and extension in certain circumstances such as for persons living with disability, whose retirement age can be 65 years.
There are schemes that allow early retirement too. On average, at least 20,000 civil servants retire annually.
Wycliffe Baraza, a KPA employee, said Ruto’s move is a relief to Kenyan retirees.
“I now feel like a Kenyan. I feel motivated to even put in more effort as I head to retirement,” he said.
Barasa said Dock Workers Union secretary general Simon Sang has been fighting for almost a decade now to have this exemption.
“He started this campaign in 2006. We used top lawyers like Paul Muite to champion our cause in court. Now, we finally have what we wanted,” he said.
Dreda Mwanjala urged the President to also ensure issues such as cost of living are addressed.
