Kenyans earning more than Sh100,000 drop
What you need to know:
- The share is not in line with luxury spending and the accumulation of property, including the purchase of homes and high-end cars that have been witnessed recently, analysts say.
The number of Kenyans earning more than Sh100,000 dropped to 79,909 last year, reflecting Kenya’s growing inequality in the formal sector and tax avoidance by the wealthy in the informal sector.
The Kenya National Bureau of Statistics (KNBS) data released on Tuesday show the top earners reduced by 4,861 members compared to a rise of 2,234 a year earlier, making it the first drop in a number of years.
The drop reflects significant business disruptions in the wake of Covid-19 economic hardships, which triggered losses and closure of firms after the State imposed restrictions to curb the pandemic.
Those earning more than Sh100,000 accounted for 2.9 percent of the 2.7 million formal workers captured in the Kenya Revenue Authority (KRA) database.
The share is not in line with luxury spending and the accumulation of property, including the purchase of homes and high-end cars that have been witnessed recently, analysts say.
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