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.
To ensure senior citizens retire with dignity and not distress, the Head of State during the 60th Labour Day celebration announced that pensions and gratuity from the public and private sectors will be exempted from tax.
Former Dock Workers Union Leader Paul Abisa described the government’s move to exempt pensions and gratuity from taxation as a major shift aimed at honoring the contribution of Kenyan citizens and workers.
He applauded the President for the bold move: “We sincerely congratulate President Ruto and his entire Kenya Kwanza administration for taking such a move,” Abisa said at a press briefing at the Uhuru Garden, Mombasa.
The move, he added, is a testament that the Head of State cares about workers and their welfare. “The truth is that we will all attain retirement age, and we will be faced with the reality of taxation. The Kenya Kwanza administration has removed the tax burden for retirees, and we wish to give them a thumbs up,” he said.
Furthermore, he expounded that the historical move is a sigh of relief as the tax exemptions will now be calculated directly when calculating Pay-As-You-Earn rather than leaving workers to claim from the Kenya Revenue Authority.
Wycliffe Baraza, an employee of KPA, says he will benefit from the tax-free pension as he is almost exiting the service. He recalled previous attempts to force the government to exempt pensions and other retirement benefits from tax, which were futile.
“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 fulfil his election pledges,” stated Baraza.
By Amina Bakari
