This archive report was first published on 2 September 2021.
Published on September 2, 2021, a report by PricewaterhouseCoopers (PwC) on behalf of the Kenya Bankers Association (KBA) reveals that the banking industry contributed significantly to Kenya's corporate tax revenue in the last two years.
According to the report, the industry's total tax contribution declined by 12 per cent in 2020 compared to 2019, largely due to reduced tax rates and a drop in workforce.
Corporate tax and Paye were the largest contributors to the sector's total tax contribution at 42.5 per cent and 16.5 per cent respectively.
Speaking during the report's release, KBA Chief Executive Habil Olaka emphasized the industry's resilience in navigating the challenges occasioned by the Covid-19 pandemic and continued supporting the economy.
Bank profitability declined last year, largely due to an increase in bad loans for which lenders were forced to set aside some money as insurance against possible defaults.
Despite the challenges, access to credit for micro, small and medium-sized enterprises (MSME) increased, with lending to the enterprises increasing by 42 per cent between 2017 and 2020.
