Finance Bill 2025 will bring great benefits to Kenyans, says President Ruto

President William Ruto announced on Thursday that the proposed Finance Bill 2025 will offer significant benefits to Kenyans. He says the Bill has been thoughtfully crafted to stimulate economic growth, deliver efficiency, enhance competitiveness, and expand opportunities.

Courtesy of the new bill, Ruto explained that pensions and gratuity payments for workers in both the private and public sectors will be tax-free starting from the next financial year.

Speaking at Uhuru Gardens Stadium in Nairobi during this year’s Labour Day celebrations, he expressed the government’s commitment to workers’ welfare.

To improve workers’ take-home pay, President Ruto stated that employers will now be required to apply eligible tax reliefs and exemptions directly when calculating Pay As You Earn (PAYE). This marks a significant shift from the current system, where these reliefs must be claimed from the Kenya Revenue Authority.

In response to the complaint by Central Organisation of Trade Unions (COTU) Secretary-General Francis Atwoli regarding some employers not implementing the 6 per cent minimum wage increase awarded in 2024, the President directed the Ministry of Labour to ensure that employees receive their entitled wages without discrimination.

“It’s unacceptable for employers not to implement the minimum wage increase. The Ministry of Labour should ensure this issue is addressed,” President Ruto said.

The President also highlighted that the government has made significant progress in addressing the long-standing shortage of teachers by hiring 76,000 over the past two years, with an additional 20,000 tutors set to be hired in January 2026.

He noted that his administration has substantially reduced the teacher shortage, which stood at 116,000 in 2022.

“We have set aside KSh2.4 billion to hire an additional 20,000 intern teachers starting January 2026,” the President announced.

Additionally, he pointed out that the government has allocated KSh1.6 billion for the capacity building of teachers and another KSh1 billion for promotions.

“These investments have improved the student-teacher ratio, enhanced literacy and numeracy outcomes, and created stable employment in communities across the country,” he said.

Furthermore, President Ruto assured Kenyans of his commitment to advancing the nation’s development.

He emphasized the need for leaders to focus on service delivery, noting that elections are two years away.

“We can’t make progress as a country if we don’t make the right decisions. I want to promise the people of Kenya that I will always make the right decisions to change the destiny of this country,” he said.

Prime Cabinet Secretary Musalia Mudavadi praised President Ruto’s efforts in transforming the country, stating that Kenya is the largest economy in East and Central Africa.

“We should all know that the biggest threat to a nation is not terrorism, but the collapse of institutions. Our institutions have been solid because of the good leadership of President Ruto,” he said.

Labour Cabinet Secretary Alfred Mutua called for an end to sexual harassment in the workplace, urging managers to create safe and respectful environments for all employees.

Mr Mutua noted that his office has received numerous complaints regarding harassment and warned that this unethical behaviour must cease.

He emphasised the importance of discouraging inappropriate conduct and specifically urged managers to refrain from engaging in sexual relationships with junior staff.

COTU Secretary-General Francis Atwoli appealed to Kenyans to embrace peace and unity, urging them to reject any attempts to sow discord among their communities.

He pointed out that residents in some areas of Africa, including Goma in the Democratic Republic of Congo, are suffering greatly due to instability.

“As Kenyans, we must guard the peace we are enjoying for the sake of prosperity,” he said.

The COTU leader urged employers to implement President Ruto’s directive regarding the 6 per cent wage increase announced during last year’s Labour Day celebrations.