
Labour Day: What you need to know
Celebrated annually on May 1.
All pensions and gratuity payments—both public and private—will be exempt from taxation.
In Summary
During Labour Day celebrations, May 1, President William Ruto outlined several key reforms aimed at improving workers’ welfare and boosting the economy.
He announced that tax reliefs will now be applied directly to workers’ salaries to increase take-home pay.
Additionally, all pensions and gratuity payments—both public and private—will be exempt from taxation.
To ease business operations, SMEs can now fully deduct equipment costs immediately.
The president also highlighted that Kenyans have saved Sh280 billion through NSSF in the last two years, with a target of Sh1 trillion in savings by 2027.
Ruto emphasised focus on agriculture, MSMEs, healthcare, housing, and digital sectors.
Further, he noted that lower fertiliser prices have boosted maize production by 40%, while reforms in the coffee sector raised farmer payments from Sh110 to Sh150 per kilo.
Celebrated annually on May 1.