Taxes on workers’ salaries, allowances, and wages grew a subdued 5.4 percent in the nine months to March 2025, the slowest growth in at least 10 years outside the pandemic period, signaling a deepening job crisis as large firms increasingly resorted to temporary employment contracts.
Data by the National Treasury shows that the Kenya Revenue Authority netted Sh412.10 billion in pay-as-you-earn (Paye) receipts in the review period, compared to Sh390.96 billion in a similar window of the previous year—a meek growth that points to a toughening labour market where decent formal jobs are shrinking amid a freeze on pay raise in most sectors.
