KRA Documents More Than Ksh.1 Trillion In Collections
KRA Documents More Than Ksh.1 Trillion In Collections
As of December 8th, this year, the Kenya Revenue Authority (KRA) reports having collected more than one trillion shillings.
According to Alex Mwangi, the acting commissioner of strategy for the authority, the increase in revenues is a 12.5% increase over the Ksh.857 billion reported during the same period in the previous year.
The taxman acknowledged that despite the performance, a number of important economic indicators presented difficulties for its attempts to mobilize money. They consist of high interest rates and a declining shilling.
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% recorded cumulatively.
Revenue performance was also affected by low domestic demand as indicated by the slowed Purchasing Managers Index (PMI) that averaged at 47.18 points in July – November 2023 down from 48.66 points in July – November 2022.
“The tight financial markets marked by 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 at 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.
In November 2023, domestic taxes totaled Ksh. 108.174 billion, representing a 14.7% increase in revenue over Ksh. 94.331 billion in the same month the previous year. KRA hopes to have collected Ksh. 2.787 trillion by the conclusion of the 2023–2024 fiscal year.
