In its November 2026 Kenya Economic Update, released in Nairobi on Wednesday, November 4, the global lender identified several government-imposed charges that continue to increase the cost of doing business in the country.
According to Kenyans.co.ke's November 4 report, the levies highlighted include the Affordable Housing Levy, Railway Development Levy and Import Declaration Fee, alongside increased road and petroleum levies.
The World Bank warned that the accumulation of multiple charges could expose businesses to increased demands for bribes, particularly when dealing with complicated tax assessment and payment procedures.
The concerns come amid wider revelations about corruption within Kenya's public institutions.
In its November 4 coverage, Citizen Digital reported that the latest World Bank economic assessment identified corruption as a major constraint preventing Kenya from achieving its full economic potential.
The publication highlighted the lender's finding that corruption widens Kenya's fiscal deficit by approximately two percentage points of Gross Domestic Product (GDP), further increasing the government's financial burden.
The Standard also reported on November 4 that corruption was costing Kenya billions of dollars through lost revenue, increased business expenses and reduced economic opportunities.
Similarly, The Star had previously highlighted concerns raised by the World Bank over high taxes, county levies, regulatory uncertainty and cumbersome administrative procedures affecting Kenyan businesses.
In its October 5 report, the publication explained how multiple national and county-level charges, alongside frequent tax changes, were increasing compliance costs and discouraging private investment.
Daily Nation had also reported on July 14 that the World Bank wanted Kenya to prioritise improving public expenditure rather than relying heavily on increasing tax rates to address its fiscal challenges.
The latest concerns come as the government continues to struggle to meet its revenue collection targets despite maintaining several taxation measures aimed at financing public expenditure.
The November 2026 economic update indicates that tax revenue stood at 12.8 per cent of GDP, falling short of the government's 13.3 per cent target.
Value Added Tax (VAT) and income tax accounted for 79.4 per cent of total tax revenue, making their performance critical to the government's ability to meet its collection targets.
However, VAT collections have also faced challenges following the April 2026 decision to reduce VAT on fuel from 16 per cent to 8 per cent. The adjustment contributed to collections falling 6.4 per cent below target.
Further findings reported by KBC on November 4 revealed that approximately 36 per cent of Kenyan businesses had experienced at least one bribery request during the preceding year.
The World Bank also established that approximately 22 per cent of businesses were expected to pay bribes when dealing with tax officials, highlighting the difficulties companies encounter when interacting with government institutions.
To address the situation, the global lender has recommended improvements in tax administration, including greater use of digital systems to make tax assessments more transparent and reduce opportunities for corruption.
It has also proposed allowing taxpayers to track refunds and audits while establishing better channels for escalating unresolved disputes.
The report was released in Nairobi by Qimiao Fan, the World Bank's Division Director for Kenya.
The latest warning places the government under renewed pressure to balance its revenue collection ambitions with the need to create a business environment that encourages investment, protects entrepreneurs and supports employment creation.
For Kenyan businesses already dealing with multiple financial obligations, the assessment raises fresh questions about whether the country's taxation system is making it increasingly difficult for companies to operate, expand and create employment.
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