The government has announced plans to exempt pensioners from tax payouts at retirement as a way of providing financial relief to retirees.
Treasury Cabinet Secretary Njuguna Nduing’u unveiled this initiative during the 2024/25 budget reading in Parliament.
He said early retirees who have made contributions for more than 20 years will be among the beneficiaries of this policy shift.
Also Read: Treasury to Borrow Ksh.596.8 Billion to Finance Ksh.3.92 Trillion Budget
Today, only retirees aged 65 years and above enjoy tax exemption when receiving their pension payments.
The state aims to include and recognize the contributions and long-term commitment of individuals who have diligently saved towards their retirement over the years.
By easing the tax burden on these individuals, the government aims to enhance the financial security and well-being of retirees, acknowledging their dedication and foresight in planning for their retirement years.
As the policy change takes effect, early retirees with over 20 years of contributions can anticipate a more favorable tax treatment upon receiving their pension benefits, providing them with additional financial security and peace of mind during their retirement years.
