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Kenyans earning more than Sh 100,000 revealed

Economy

Kenyans earning more than Sh 100,000 revealed


Of the 2.92 million regular workers recorded in the Kenyan Revenue Service (KRA) database, 2.9% have incomes of Sh 100,000 or higher. File Photo | NMG

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Overview

  • According to data from the National Bureau of Statistics of Kenya (KNBS) released on Tuesday, the top revenue earners increased by 2,234 members compared to the increase of 3,178 in the previous year.
  • Of the 2.92 million regular workers recorded in the Kenyan Revenue Service (KRA) database, 2.9% have incomes of Sh 100,000 or higher.
  • According to analysts, the 2.9% share is inconsistent with luxury spending and wealth accumulation, such as recently witnessed home and luxury car purchases.

Reflecting growing inequality in the formal sector of Kenya and tax avoidance by wealthy Kenyans in the informal sector, the number of Kenyans earning more than Sh 100,000 increased 2.71 percent last year to 84,907. Did.

According to data from the National Bureau of Statistics of Kenya (KNBS) released on Tuesday, the top revenue earners increased by 2,234 members compared to the increase of 3,178 in the previous year.

Of the 2.92 million regular workers recorded in the Kenyan Revenue Service (KRA) database, 2.9% have incomes of Sh 100,000 or higher.

According to analysts, the 2.9% share is inconsistent with luxury spending and wealth accumulation, such as recently witnessed home and luxury car purchases.

The KRA has consistently questioned data showing that only 2.8% of workers are paid over Sh 100,000. This indicates a high percentage of high-income earners whose lifestyles are not in harmony with the taxes and tax returns they pay.

According to the tax office, the surge in luxury goods imports and the investment of millions of shillings in real estate could potentially lead to large tax leaks.

The KRA’s claim is supported by the fact that very few Kenyans are officially registered as belonging to the high-income group, despite significant increases in consumption in areas such as Nairobi. ..

Tax collectors believe that some workers earn additional cash from ventures such as real estate, dividends and royalties, but do not declare additional income.

KRA has struggled to draw more people into the tax system and curb tax evasion and tax evasion in order to reach the goal in an economy where government revenues have not consistently met the goal.

Nearly half or 45.98 percent of the 2.93 million regular workers captured in the KRA database earn less than Sh30,000, highlighting the issue of wage inequality in Kenya.

Revenue inequality is partly due to the previous centralized government system that led to the sharing of resources since independence.

The government’s delegation system, launched in 2013, addresses economic imbalances, as analysts say it needs to provide incentives to attract private investors to the county and spread wealth. I raised my expectations.

Mild economic activity over the past two years has settled income inequality through declining employment and stagnant wages, which are the most damaging to the middle class.

Kenya’s economy grew 5.8% last year from 4.8% in 2017, but private sector activity leads to employment and high wages, but remains silent.

According to data from the Economic Survey 2020, last year’s economy created about 78,500 new formal jobs, unchanged from 2018 and down from 114,400 in 2017.

This is the slowest pace of formal employment growth since 2012, when the economy generated 75,000 people, spurring the youth unemployment crisis. This data does not capture headcount reductions and net employment.

Given the recent expansion of economic growth, the decline in new jobs, coupled with the stagnation of wages for the majority of workers, has raised questions about the equitable distribution of growth dividends among Kenyans.

According to official data, the private sector generates most of the income of over 100,000 shillings, with men dominating the highest wage levels.

Compared to 30,126 women in this club, about 64.5 percent or 54,681 men earn more than Sh 100,000.

High-paying jobs are concentrated in the private sector, accounting for 73,099 people, or 86.2 percent of all high-income earners.

The public sector, including the territory, state and county governments, employed 11,708 of the largest check-backers.

The education sector, on behalf of teachers, managers, secondary school teachers, etc., accounted for the largest share of revenues above Sh 100,000 with 30.9 percent or 17,879 people.

Retail business

Financial services were second, accounting for 11,598 or 15.33% of the top-income earners, followed by wholesale and retail transactions and motorcycle and car repairs, which numbered 10,909 or 4.2%.

Employees engaged in activities such as mining, quarrying, and producing undifferentiated products did not earn more than Sh100,000.

The actual labor income across the country remains unknown, and most Kenyans are employed in the informal agricultural sector.

But overall, the private sector issued the largest wage check last year, exceeding 1 trillion shillings. This is more than 70 percent of total wage income.

This underscores the company’s important role in generating and maintaining income from employment.

Kenyans earning more than Sh 100,000 revealed

https://www.businessdailyafrica.com/bd/economy/kenyans-earning-over-sh100-000-revealed-3238050 Kenyans earning more than Sh 100,000 revealed

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