Last year, the number of Kenyans earning more than Sh100,000 fell to 79,909, showing the country’s growing inequality in the official sector and tax evasion by the wealthy in the informal sector.
The Kenya National Bureau of Statistics (KNBS) data issued on Tuesday showed that the top earners dropped by 4,861 members from a year earlier, the first dip in several years, compared to an increase of 2,234 members.
The reduction indicates severe business interruptions in the aftermath of the Covid-19 economic troubles, which resulted in job losses and firm closures after the government implemented limitations to combat the pandemic.
The 2.7 million formal workers captured in the Kenya Revenue Authority (KRA) database accounted for 2.9 per cent of those earning more than Sh100,000.
According to researchers, the tally does not correspond to recent trends in luxury expenditure and property accumulation, such as the acquisition of homes and high-end automobiles.
The KRA has consistently questioned data suggesting that only 2.9 per cent of workers are paid Sh100,000 or more, implying that there is a greater number of high-income individuals whose lifestyles do not correspond to their taxes or declared income.
