Nairobi — Kenyan banks paid Sh194.81 billion in taxes to the National Treasury in the year ended December 31, 2024, underscoring their significant contribution to the economy.

The 2024 Kenya Banking Sector Total Tax Contribution Report, released by the Kenya Bankers Association (KBA) and PwC Kenya, shows that taxes from 36 banks and microfinance institutions accounted for 8.09 percent of total government tax receipts.

Corporate tax remained the largest component at Sh69.41 billion, or 35.6 percent of the total, though it dipped 4.98 percent from 2023. This was offset by a sharp rise in people-related taxes, particularly from the Affordable Housing Levy, whose collections more than doubled to Sh3.45 billion, up 113 percent.

"The Sh194.81 billion total comprised Sh100.12 billion in taxes borne directly by banks, such as corporate tax, and Sh94.69 billion in taxes collected on behalf of the government, including PAYE and withholding tax," the report states.

The release follows a year of strong performance by Kenyan lenders. Equity Bank posted a 12 percent rise in net profit to Sh48.8 billion, while KCB Group's profit surged 64.9 percent to Sh61.8 billion.