From left: Kenya Bankers Association (KBA) CEO Raimond Molenje, Partner – Tax and Legal Services, PwC Kenya Alice Muriithi, and Kenya Revenue Authority (KRA) chairperson Ndiritu Muriithi launch the Total Tax Contribution 2024 Report
Kenya’s banking sector remitted a total of KSh194.81 billion to the National Treasury in 2024, reflecting its central role in national revenue mobilization, according to the newly released KBA Total Tax Contribution Report 2024.
The report developed by the Kenya Bankers Association (KBA) in collaboration with PwC Kenya, shows that 36 banks and microfinance institutions collectively contributed 8.09% of all government tax receipts, underscoring the sector’s consistent compliance and heavy fiscal responsibility.
Speaking during the launch, PwC Kenya Tax Partner Alice Muriithi noted that the KSh194.81 billion represents a two percent growth compared to 2023. “These 36 taxpayers alone account for 8% of Kenya’s total tax collections, which shows just how critical the banking sector is to our economy,” she said.
The KBA Total Tax Contribution Report 2024 reveals that the total tax comprised KSh100.12 billion in taxes borne including corporate tax and KSh94.69 billion in taxes collected on behalf of the government, such as PAYE and withholding tax.
Corporate tax remained the largest single component at KSh69.41 billion, making up 35.63% of the total, although it dropped by 4.98% compared to the previous year.
This decline was offset by a surge in people-related taxes, particularly from the Affordable Housing Levy, which more than doubled to KSh3.45 billion after its full-year implementation.
Muriithi added that while the sector continues to shoulder a significant tax load, the focus should now shift to broadening the tax base. “The banking industry is paying its fair share. What remains critical is bringing more taxpayers into the system so that the burden is evenly distributed,” she said.
Her remarks were echoed by KBA Chief Finance Officer Kennedy Mutisia, who said the report aims to spark constructive dialogue on tax policy and sustainability. “This is the sixth edition of the KBA Total Tax Contribution Report 2024, and its insights are vital in shaping how tax policies evolve to balance revenue growth with economic resilience,” Mutisia said.
He emphasized the need for a predictable and stable tax environment, noting that constant policy changes make compliance more costly and complex for financial institutions. “A stable tax framework allows better business planning and ensures smoother compliance,” he added.
PwC Country and Regional Senior Partner for Eastern Africa, Peter Ngahu, echoed the same sentiment, noting that the 8.09 percent contribution from just 36 taxpayers underscores the country’s heavy reliance on a small group of highly compliant entities.
He emphasized the need for broader tax policy dialogue to ensure fiscal sustainability while maintaining a fair and competitive environment for the banking sector.
According to the report, for every KSh100 in profit made by banks, KSh38.50 was paid as tax down from KSh46.77 in 2023 mainly due to increased profitability. The document also highlighted that the government received 54.95% of the total value created by banks through taxes, followed by employees at 25.62% and shareholders at 19.44%.
Mutisia further urged policymakers to leverage digital tools to simplify compliance and reduce enforcement costs. “Many Kenyan businesses are willing to pay taxes; the challenge lies in complex procedures. With better automation through platforms like iTax and eTIMS, compliance becomes easier and fairer,” he said.
Both KBA and PwC agreed that while the banking industry continues to play a leading role in revenue contribution, the national conversation must now expand to how collected taxes are spent to achieve real development outcomes.
