Nairobi, July 14 -- 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).

The stronger corporate contribution comes as the pool of salaried workers continues to narrow. KRA said formal employment accounted for just 15.3 percent of total employment in 2025, down from 15.5 percent in 2024 and 15.7 percent in 2022.

"The ...