Sharp Daily
No Result
View All Result
Tuesday, June 24, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Kenya’s Banking Sector Defies Turbulence, Sets Record Tax Contribution to Government

Joel Mugonyi by Joel Mugonyi
August 3, 2023
in News
Reading Time: 2 mins read
Kenya Banking District, infomineo.com

Despite facing a challenging economic environment in 2022, which included increased inflation, prolonged drought, currency depreciation, geopolitical pressure, and election uncertainties affecting businesses across Kenya, the banking sector showed remarkable resilience. The sector contributed a record amount of Kshs 181.3 billion to the Kenya Revenue Authority (KRA), the highest ever collected from banks since 2019. The significant increase in the total tax contribution was primarily driven by Corporate Tax (CT), which surged by 77.3% to Kshs 87.7 billion in 2022 from Kshs 49.8 billion in 2021.

Read more: The Banking Sector Continues to Show Sustained Performance

The banking sector also saw a rise in withholding tax, reaching Kshs 37.3 billion, and Pay As You Earn (PAYE) contributed Kshs 37.2 billion during the same period. The total tax contribution from 39 banks participating in the PwC report on the Kenya Banking Sector’s Total Tax Contribution in 2022 represented 8.93% of all government receipts, an improvement from 6.8% in 2021.

The report also analysed historical tax contribution trends since 2018, with the Kenya Revenue Authority collecting Kshs 99.0 billion in 2018, Kshs 120.1 billion in 2019, Kshs 104.8 billion in 2020, and Kshs 129.5 billion in 2021. In 2020, the total tax contribution declined by 16% due to the initial impact of the Covid-19 pandemic on the country’s GDP, resulting in a 31.0% decrease in bank profitability, increased loan write-offs, provisions, and government-issued tax reliefs.

RELATEDPOSTS

No Content Available

However, the sector rebounded in 2021, with a 23.6% increase in total tax contribution compared to 2020, driven by a substantial surge in corporate tax, excise duty, and withholding tax. The economic recovery in 2021 was attributed to the reopening of all sectors of the economy, facilitated by greater COVID-19 vaccine access.

Read more: Banking Researchers Highlight Banking Industry Opportunities

Furthermore, the growth in 2022 was boosted by a significant 60.13% increase in Excise Duty, primarily attributed to higher fees and commissions. Kenya’s banking sector has demonstrated its significance in driving economic progress and supporting the nation’s financial stability, despite facing adverse circumstances.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

Kenya’s Buyback Plan for 10-Year Eurobond May Face Setback Amidst Rising Yields

Next Post

NSE Bond Investors Record Losses in Q2’2023 Secondary Market

Joel Mugonyi

Joel Mugonyi

Related Posts

Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025
News

The downside of Impact Investing

May 2, 2025

LATEST STORIES

Parliament slashes tax on digital asset trades: What this means for investors

June 23, 2025

Understanding Joint Ventures: A strategic tool in modern business

June 23, 2025

How bushy can a bush safari get?

June 20, 2025

Understanding SPVs

June 20, 2025

Why small investments are a power move

June 20, 2025

Social consequences of the tax relief for gamblers

June 20, 2025

How E-Tendering can reshape public procurement in Kenya

June 20, 2025

Unlocking long-term wealth with the power of compounding

June 19, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024