Kenya's banking sector contributed a massive KES 194.81 billion in taxes to the government in 2024, representing 8.09% of all government tax receipts. This highlights a significant reliance on a small number of compliant taxpayers.

• The Kenya Bankers Association (KBA) and PwC report details that taxes borne by banks totaled KES 100.12 billion (mostly Corporate Tax at KES 69.41 billion), while taxes collected on behalf of the government amounted to KES 94.69 billion.
• Despite a decline in Corporate Tax by 4.98%, the controversial Affordable Housing Levy (AHL) saw collections from banks surge by 113% to KES 3.45 billion, compensating for the dip.
• The banks' effective tax rate (Total Tax Rate) decreased from 46.77% in 2023 to 38.50% in 2024 due to increased profitability, yet their total cash contribution to the government still rose.
• The report reveals the government received the largest share of value generated by banks at 54.95%, compared to 25.62% for employees and 19.44% for shareholders.
• Banks reported significant administrative costs averaging KES 13.5 million per bank annually for tax compliance, urging the government to simplify processes like returning to monthly Withholding Tax filings and improving automation on platforms like iTax and eTIMS.