Banks Contributed KES 194.81 Billion to Government in 2024
The Kenyan banking sector contributed a total of KES 194.81 billion to the National Treasury in the year ending December 31, 2024, according to the Total Tax Contribution of the Kenya Banking Sector – 2024 Report.
The report, released by the Kenya Bankers Association (KBA) in collaboration with PwC Kenya, shows that the Total Tax Contribution (TTC) from 36 participating banks and microfinance institutions represented 8.09 percent of all government tax receipts for the year. This underscores the country’s reliance on a small pool of highly compliant taxpayers.
The KES 194.81 billion total comprised KES 100.12 billion in taxes borne by banks, such as Corporate Tax, and KES 94.69 billion in taxes collected on behalf of the government, including Pay As You Earn (PAYE) and Withholding Tax.
A key finding from the report is the shifting nature of the tax burden. Corporate Tax remained the largest component at KES 69.41 billion, accounting for 35.63 percent of total tax contribution. However, this represented a 4.98 percent decline from 2023. The drop was partly offset by a significant rise in people-related taxes, largely driven by the full-year implementation of the Affordable Housing Levy, which saw collections from the sector more than double to KES 3.45 billion.
For every KES 100 of profit earned by participating banks, KES 38.50 was paid to the government as taxes, representing the Total Tax Rate (TTR). This figure decreased from 46.77 percent in 2023, mainly due to higher bank profitability.
“The KES 194.81 billion tax contribution by 36 participating banks in 2024 highlights the sector’s central role in Kenya’s revenue mobilization. This data provides valuable insights for policymakers as they balance fiscal sustainability with sector resilience. The banks’ voluntary participation also reflects a strong commitment to transparency and responsible governance,” said KBA Chief Executive Officer Raimond Molenje.
PwC Country and Regional Senior Partner for Eastern Africa, Peter Ngahu, added, “This 8.09 percent contribution from just 36 taxpayers underscores the banking sector’s important role in Kenya’s tax revenues and highlights the continued reliance on a few highly compliant taxpayers. This data informs the essential dialogue around tax policy needed to ensure the sector remains robust.”
The report also analyzed how banks distribute value among their stakeholders. In 2024, the government received the largest share at 54.95 percent through taxes, employees received 25.62 percent in salaries and benefits, while shareholders earned 19.44 percent through dividends.
The report further noted that banks incur substantial administrative costs related to tax compliance, with an average of three full-time employees dedicated to tax functions, costing about KES 13.5 million per bank annually. To ease this burden, participants suggested reinstating monthly Withholding Tax filings and enhancing automation through systems such as iTax and eTIMS.
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