Kenya’s banks paid a total of 143 billion shillings in taxes to KRA between 2016 and 2018, an amount enough to fund the construction of 5 Thika Superhighways.
This is according to the 2019 Kenya Banking Industry Shared Value Report released by the Kenya Bankers Association (KBA) commercial banks in Kenya have been instrumental in boosting the Government’s revenue basket, contributing 70 billion and 73 billion shillings in taxes during the 2016/2017 and 2017/2018 financial years, respectively.
The 143 billion shillings, according to the report, is enough to fund construction of 5 new superhighways, citing that construction of one such project cost the government 32 billion shillings.
Banks have also remained crucial in job creation and adding value to the labour market.
According to the report by KBA, in FY 2017/2018, commercial banks spent 39 billion shillings on staff costs including wages and benefits for the more than 30,000 people employed in the sector.
While technology has seen realignments in many organisations that saw the number of employees fall by 2,792 between 2016 and 2017, staff productivity and service delivery has improved. On average, one employee was serving 1,227 customers in 2016.
The same employee is now serving more than 1,544 customers as a result of increased efficiency from technology.
Furthermore, banks also improved salaries and remuneration of their personnel. Data from the CBK indicates salaries and wages as a ratio of banks’ income increased to 18.6 percent in 2017 from 16.9 percent in 2016.
Working relations between financial service providers and their staff also improved. Collective Bargaining Agreements (CBAs) have been constructive in averting industrial action in the sector.
The last strike by bank workers was experienced in 1998. Such a track record of peaceful negotiations underscores the commendable engagement practices between the industry through KBA and labour unions.