Kenya Ports Authority (KPA) workers have lauded the government’s move to exempt pension and gratuity from taxes as proposed in the Financial Year 2025/2026.

To ensure senior citizens retire with dignity and not distress, President William Ruto announced during this year’s Labour Day celebrations that pension and gratuity – be it from the public and private schemes – 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 that will be an honour and appreciation of the contribution of Kenyan citizens and workers to national development. Abisa lauded 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-oriented leader, let us support him to fulfil his election pledges,” stated Baraza.

• A Tell Media / KNA report / By Amina Bakari