Kenya’s banking sector distributed KSh402.26 billion to the government, employees and shareholders in 2025, with workers receiving a larger share of the value than they did the previous year.
The Kenya Bankers Association (KBA), in its Total Tax Contribution Report 2025, shows that the amount distributed by 33 participating banks and microfinance institutions rose by 13.46 per cent from KSh354.54 billion in 2024.
The government received the largest share, accounting for 51.11 per cent of the total through taxes banks pay directly and taxes collected on behalf of the state.
“‘Value distributed’ consists of the sum of taxes contributed, employee emoluments and incentives and dividends paid to shareholders. These categories of persons – government, employees, and shareholders – represent the key stakeholders in any corporate organisation,” the report read.
“The Government received the largest proportion of the value distribution by the participating banks in 2025 at 51.11% (in the form of taxes collected and borne), followed by employees (in the form of employee emoluments net of taxes) at 27.75% and lastly shareholders at 21.15% (in the form of dividends net of taxes).”
In 2025, the increase in value distributed to employees was driven by a 15.61% rise in salaries and wages paid by participating banks.
Employees received 27.75 per cent in salaries, wages and other employment benefits after taxes, while shareholders received 21.15 per cent in dividends after taxes.
How Much Banks Paid Workers
Employees received KSh111.62 billion in salaries, wages and other employment benefits after taxes in 2025, up from KSh90.82 billion in 2024.
This represented an increase of approximately KSh20.8 billion, or 22.9 per cent, in the net employee emoluments recorded in the report.
The report attributed the increase in employee distributions to a 15.61 per cent rise in salaries and wages paid by participating banks.
Total wages increased from KSh123.21 billion in 2024 to KSh142.44 billion in 2025.
The figures point to higher spending on employee remuneration across the participating institutions, although the report does not establish that every bank employee received a salary increase of the same proportion.
Government Takes the Largest Share
Despite the increase in employee payments, the government remained the largest recipient of the value the banking sector distributed.
Banks contributed KSh205.58 billion in total taxes in 2025, compared with KSh194.81 billion the previous year.
The amount comprised KSh98.36 billion in taxes borne directly by the participating institutions and KSh107.22 billion in taxes collected and remitted to the government.
The latter includes taxes banks administer on behalf of the state, such as Pay As You Earn (PAYE), withholding taxes, and excise duty.
Although the total tax contribution increased, the government’s share of the value distributed declined from 54.95 per cent in 2024 to 51.11 per cent in 2025.
Shareholders Receive KSh85 Billion
Shareholders also received a larger share of the banking sector’s economic value during the year.
The report shows that participating banks paid KSh85.06 billion in after-tax dividends in 2025, up from KSh68.91 billion in 2024.
The increase came as the participating institutions recorded stronger profitability. Their combined profit before tax rose by 17.63 per cent, from KSh260.09 billion to KSh305.95 billion.
Shareholders’ portion of the total value distributed increased from 19.44 per cent to 21.15 per cent.
“The increase in value distributed through dividends in 2025 relative to 2024 was broadly consistent with stronger growth in study participants’ profitability,” the report added.
“Profit before tax of the participating banks grew by 17.63% from KES 260.09 billion in 2024 to KES 305.95 billion in 2025.”
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