World Bank seeks 38pc tax rate for top earners

The move to tax the rich more is expected to impact less than 10 percent of formal sector employees.

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The World Bank wants Kenya to increase the top rate of income tax to 38 percent for those earning over Sh800,000 while reducing the burden for mid and low-income earners to boost the formal economy.

The multilateral lender is pushing for the creation of a new tax band for the top earners to fill the hole in the public finances that will be created by reducing the tax rate for all monthly pay below Sh166,677.

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