Kenya plans to stop taxing retirement money. The Cabinet made this change on Tuesday during a meeting with President Ruto. People leaving jobs will keep all their service payments instead of giving part to tax collectors. This new rule benefits both government workers and private company staff.
The Finance Bill 2025 contains this change, among others, meant to fix tax problems. Officials want to catch people who cheat on tax returns and improve tax collection without adding new taxes.
Companies must apply all tax breaks workers deserve when figuring paychecks. Many skip these steps today, forcing workers to ask tax offices for money back later. This change helps everyday Kenyans keep more earnings.
The government calls these changes part of its plan to help regular citizens. Leaders say they want money systems to work for everyone, not just the wealthy.
The Finance Bill 2025 contains this change, among others, meant to fix tax problems. Officials want to catch people who cheat on tax returns and improve tax collection without adding new taxes.
Companies must apply all tax breaks workers deserve when figuring paychecks. Many skip these steps today, forcing workers to ask tax offices for money back later. This change helps everyday Kenyans keep more earnings.
The government calls these changes part of its plan to help regular citizens. Leaders say they want money systems to work for everyone, not just the wealthy.
