KRA Records Over Ksh.1 Trillion In Collections
The Kenya Revenue Authority (KRA) says it has recorded a collection of over one trillion shillings as of December 8th this year.
The authority’s acting commissioner of strategy Alex Mwangi, says the growth in revenues represents a 12.5% rise when compared to Ksh.857 billion posted in the same period last year.
Despite the performance, the taxman admitted that several key economic indicators posed challenges to its revenue mobilization efforts. They include a depreciating shilling and high interest rates.
While import values (in Kenya Shilling terms) grew by 36.0% and 11.0% in November 2023 and July – November 2023 respectively, in dollar terms, the growth for the month was subdued to 9.0%, and a decline of 9.2% was recorded cumulatively.
Revenue performance was also affected by low domestic demand as indicated by the slowed Purchasing Managers Index (PMI) that averaged 47.18 points in July – November 2023 down from 48.66 points in July – November 2022.
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“The tight financial markets marked by an increase in lending rates and interbank rates, has slowed down credit extension, especially to the private sector, resulting into decline in Bank profitability by 4.9% as of September 2023,” said the authority.
Customs recorded the second-highest monthly collection in the history of KRA. Customs revenue collections amounted to Ksh.72.116 billion equivalent to a growth of 17.6% over Ksh.61.322 billion realized in November 2022.
The good performance is attributed to oil taxes that collected Kshs 27.943 billion, translating to a growth rate of 42.5% over Ksh.19.610 billion collected in the same period in the last financial year.
Domestic taxes amounted to Ksh.108.174 billion in November 2023, translating to a revenue growth of 14.7% over Ksh.94.331 billion realized in November 2022. KRA targets to collect Ksh.2.787 trillion by the end of the Financial Year 2023/2024.
KRA Records Over Ksh.1 Trillion In Collections