- KES 38.50: tax paid by banks to the government for every KES 100 in profit (TTR = 38.50%)
- 09%: Proportion of all government tax receipts attributable to banks
NAIROBI, Kenya: 24th October 2025: The Kenya Banking Sector contributed a total of KES 194.81 billion to the National Treasury in the year ended 31 December 2024, according to the Total Tax Contribution of the Kenya Banking Sector – 2024 Report.
The report, released by the banking industry’s umbrella body, Kenya Bankers Association (KBA), in collaboration with PwC Kenya, reveals that the Total Tax Contribution (TTC) from 36 participating banks and microfinance institutions represented 8.09% of all government tax contributions for the period, highlighting a significant reliance on a small pool of highly compliant taxpayers within the economy.
“The KES 194.81 billion TTC comprised KES 100.12 billion in taxes borne, direct costs to the banks such as Corporate Tax, and KES 94.69 billion in taxes collected on behalf of the government, such as Pay As You Earn (PAYE) and Withholding Tax,” the report notes.
A notable trend from the report is the shifting nature of the tax burden. While Corporate Tax remained the single largest component at KES 69.41 billion (35.63% of TTC), it declined by 4.98% compared to 2023. This was partly offset by a significant rise in people-related taxes, driven by the full-year implementation of the Affordable Housing Levy (AHL), which saw collections from the banking sector more than double, surging by 113% to KES 3.45 billion.
Notably, the report finds that for every KES 100 of profit made by the participating banks, KES 38.50 was paid to the government as taxes, a measure known as the Total Tax Rate (TTR). The trend represents a decrease from 46.77% in 2023, primarily driven by an increase in 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 mobilisation. This data provides valuable insights for policymakers as they consider how to 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.
“This 8.09% 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,” said Peter Ngahu, PwC Country and Regional Senior Partner, Eastern Africa.
The report further examines how banks distribute value to their key stakeholders. In 2024, the government received the largest portion at 54.95% via taxes, followed by employees at 25.62% through salaries and benefits, and shareholders at 19.44% through dividends.
The report notes that banks incur significant administrative costs, with an average of three full-time employees dedicated to tax-related tasks, costing about KES 13.5 million per bank each year. Participants suggested reducing this burden by returning to monthly Withholding Tax filings and increasing automation using platforms such as iTax and eTIMS.
To read the full report, kindly click here.
Media Contacts
Christine Onyango
Director, Communication and Public Affairs
Kenya Bankers Association
Email: conyango@kba.co.ke
About Kenya Bankers Association
The Kenya Bankers Association (KBA) is the umbrella body for all commercial banks in Kenya, regulated by the Central Bank of Kenya (CBK). Established on 16th July 1962, KBA represents 46 member institutions with assets exceeding KES 7.7 trillion. The Association’s core mandate is to champion a stable, competitive, and inclusive banking industry by influencing legislation, regulation, and policy to enhance access to affordable credit for individuals, households, and businesses. KBA also drives financial sector development through strategic initiatives such as the launch of Pesalink, the industry’s first peer-to-peer digital payments platform. In partnership with the CBK and other stakeholders, KBA has also spearheaded key projects including the modernization of the National Payments System, the implementation of the Real Time Gross Settlement System (RTGS), and the Kenya Credit Information Sharing Initiative. Guided by its brand statement, One Industry. Transforming Kenya, KBA continues to promote a strong and professional banking sector that advances innovation, fosters financial inclusion, and supports national economic growth. Learn More: www.kba.co.ke.
About PwC Kenya
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