Firms overtake employees in driving fresh KRA collections

Cabinet Secretary John Mbadi oversees the second disbursement of the National Youth Opportunities Towards Advancement (Nyota) Fund at Jomo Kenyatta International Stadium in Mamboleo, Kisumu on July 10, 2026. 

Photo credit: Alex Odhiambo | Nation Media Group

Kenya's income tax burden is increasingly shifting from salaried workers to companies, with businesses generating more government revenue as company profits rebound while the formal employment base maintains a shrinking trajectory.

Fresh figures from the Kenya Revenue Authority (KRA) show corporation tax collections rose by Sh42.2 billion to Sh347.1 billion in the financial year ended June 2026, surpassing the Sh37.8 billion increase delivered through Pay As You Earn (PAYE).

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.