State scraps taxes on pension and gratuity

President William Ruto has announced the removal of all taxes on pension and gratuity payments during the Labour Day celebrations held in the capital, Nairobi.

Ruto says the proposal contained in the finance bill before the national assembly seeks to ensure Kenyan workers retire in dignity.

Further, he said the finance bill contains proposals that he says will stimulate economic growth, deliver efficiency and enhance competitiveness, even as he hailed government policies for enhancing the saving culture.

In the meantime, he says plans are underway to recruit 20,000 additional teachers to improve the teacher-to-student ratio.

He further dismissed assertions that in his recent trip to China, he was seeking a loan saying the deal inked will see the expansion of the SGR railway without a cost to the exchequer.