Mombasa: A section of Kenya Ports Authority (KPA) workers has lauded the government's move to exempt pension and gratuity from taxes as outlined in the budget for Financial Year 2025/2026.
According to Kenya News Agency, the Head of State announced during the 60th Labour Day celebration that pensions and gratuity from the public and private sectors will be exempted from tax to ensure senior citizens retire with dignity. Former Dock Workers Union Leader Paul Abisa described the move as a major shift aimed at honoring the contribution of Kenyan citizens and workers. He applauded the President for the bold move, stating at a press briefing at the Uhuru Garden in Mombasa: 'We sincerely congratulate President Ruto and his entire Kenya Kwanza administration for taking such a move.'
Abisa further emphasized that this move demonstrates the Head of State's concern for workers and their welfare. He noted that retirement brings the reality of taxation, and the Kenya Kwanza administration has now relieved retirees of this tax burden. He explained that the tax exemptions will now be directly calculated when determining Pay-As-You-Earn, rather than requiring workers to claim from the Kenya Revenue Authority.
Wycliffe Baraza, an employee of KPA, expressed his anticipation of benefiting from the tax-free pension as he nears retirement. He recalled previous unsuccessful attempts to persuade the government to exempt pensions and other retirement benefits from tax. 'We are elated that it has come to fruition during the reign of President Ruto. He has kept his pledge; he is an action-orientated leader. Let us support him to fulfill his election pledges,' stated Baraza.