The Kenya Revenue Authority (KRA) could surpass its revenue collection for the first time in more than five years.
The tax collector is currently at 93.6 per cent target, a month to the end of the 2021/22 financial year, according to the latest Statement of Actual Revenues and Exchequer Issues by the National Treasury
The data shows Kenya Revenue Authority (KRA) had collected Sh1.63 trillion by end of May, Sh110 billion shy of a revised collection target of Sh1.74 trillion.
The initial target was Sh1.707 trillion but this was revised to factor in subsequent supplementary budgets.
The agency has on average been collecting monthly more than Sh100 billion monthly this year.
Yesterday, a senior official at KRA told the Star that the agency has surpassed monthly collections for Value Added Tax (VAT), Excise Duty and Custom Duty since July last year.
He, however, declined to give actual figures, insisting that only the relevant commissioner is allowed to comment on the matter.
Our request for the same had not been granted by the time of going to press.
The revenue agency came close to hitting its annual tax target in the year ending June 2021 when it missed the mark by just Sh16.8 billion.
According to National Treasury data, the agency raised Sh1.562 trillion in 12 months from July last year.
This was against a target of Sh1.579 trillion as per revised budget estimates covering the period to June this year.
Even so, the collection represented a much-improved performance, 98.9 per cent of the total target compared 97.4 per cent a year prior.
Last week, KRA Commissioner General Githii Mburu said his agency has exceeded two upward revenue target revisions brought in through supplementary budgets, pointing to the enhanced tax enforcement and recovery measures the taxman has been implementing in the period.
“I believe we will be over the original target of Sh1.8 trillion by Sh140 billion. Right now we are above it by Sh126 billion, so we hope this month we can do another Sh15 billion, so it will be about Sh140 billion,” Mburu said on the sidelines of the Pan African tax forum held in Nairobi last week.
The higher collection, however, comes in an environment of the rising cost of goods and services largely because of global supply constraints which have been exacerbated by the Russia-Ukraine war.
Both manufacturers and consumers have been pushing for a lean tax regime to help ease the rising inflation that hit 7.1 per cent last month.
The Central Bank of Kenya expects the cost of living to rise above 7.5 per cent in the coming months.
Cumulatively, total revenue including appropriations from ministries stood at Sh2.66 trillion, falling shy of reset expectation by Sh61 billion.
The exchequer is targeting a total revenue collection of Sh3.27 trillion after it was revised from Sh3.19 trillion.
So far, the government has spent at least Sh1.02 trillion against a budget a revised budget of Sh1.79 trillion. Allocation to ministries had been initially set at Sh1.1 trillion
The National Treasury now projects a fiscal deficit of 7.5 per cent in the current financial year and which is projected to close out at a lower 3.6 per cent in June 2025.
The country is way above 90 per cent in debt servicing for the year, having repaid Sh916 billion my end of May compared to a revised estimate of Sh1.15 trillion.
It is however, to disburse close to Sh100 billion to counties.
According to the statement, devolved units had received Sh286.4 billion by end of May against set allocation of Sh370 billion.