- Kenya’s banking sector corporate taxes have been on the rise in the past few years.
- A new analysis shows that the contribution of the banking sector towards Pay-As-You-Earn was 7.79% of all PAYE collected in the country.
- The study, included 43 institutions—37 banks and six microfinance institutions.
The total tax contribution (TTC) from Kenya’s banking sector reached $1.5 billion (KSh190.26 billion) in 2023, a 4.96 per cent increase from the previous year, Kenya Bankers Association has said. This marks the highest TTC since the study began in 2017, representing 8.78 per cent of the total government tax receipts for the financial year ending in June 2023.
According to the Banking Sector Total Tax contribution report, the TTC comprised $793 million (KSh102.52 billion) in taxes borne by the participating banks and microfinance institutions and $678.8 million (Ksh87.74) billion in taxes collected.
While the overall tax contribution grew, taxes borne by …
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