Kenya’s Banking Sector Contributes KES 194.81 Billion to National Treasury in 2024 – New Report
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.
NAIROBI, Kenya, October 27, 2025 – Kenya’s banking sector contributed KES 194.81 billion to the National Treasury in 2024, underscoring its crucial role in the country’s fiscal framework, according to the Total Tax Contribution of the Kenya Banking Sector – 2024 Report released by the Kenya Bankers Association (KBA) and PwC Kenya.
The report, which covered 36 commercial banks and microfinance institutions, shows that the sector’s total tax contribution accounted for 8.09 percent of all government tax receipts, illustrating Kenya’s continued reliance on a small number of highly compliant taxpayers.
Of the total, KES 100.12 billion represented taxes borne directly by the banks including Corporate Tax while KES 94.69 billion comprised taxes collected and remitted on behalf of the government, such as Pay As You Earn (PAYE) and Withholding Tax.
Corporate Tax remained the largest single tax component at KES 69.41 billion, or 35.63 percent of the sector’s total contribution, though it declined by 4.98 percent compared to 2023. The shortfall was partially offset by a surge in people-related taxes, primarily driven by the full-year implementation of the Affordable Housing Levy (AHL), which more than doubled to KES 3.45 billion an increase of 113 percent.
The report further revealed that for every KES 100 of profit earned, banks paid KES 38.50 to the government in taxes, reflecting a Total Tax Rate (TTR) of 38.5 percent down from 46.77 percent in 2023 due to higher profitability across the sector.
KBA Chief Executive Officer, Raimond Molenje, said the findings highlight the sector’s pivotal role in national revenue mobilization and its commitment to transparency.
“The KES 194.81 billion tax contribution by 36 banks demonstrates the industry’s integral role in fiscal sustainability and economic growth,” said Molenje. “This data offers valuable insights for policymakers as they work to balance revenue needs with sector resilience.”
PwC Country and Regional Senior Partner, Eastern Africa, Peter Ngahu, emphasized the significance of the banking sector’s compliance.
“An 8.09 percent contribution from only 36 taxpayers reinforces the sector’s importance to Kenya’s tax base and the need for informed dialogue on tax policy to support continued growth,” Ngahu said.
The report also highlights value distribution among stakeholders with 54.95 percent going to government via taxes, 25.62 percent to employees through salaries and benefits, and 19.44 percent to shareholders through dividends. It further notes the heavy administrative burden of tax compliance, urging enhanced automation through platforms such as iTax and eTIMS to ease operational costs.
