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KRA exceeds custom revenue target by 2.07bn

The collection is against the target of Sh46.99 billion.

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by ALFRED ONYANGO

Business24 July 2023 - 11:58
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In Summary


  • KRA collected Sh5.39 billion against a target of Sh4.81 billion from air navigation service charge.
  • The taxman also collected Sh11.57 billion from the air passenger services charge at JKIA, against a target of Sh8.04 billion.
KQ Crew handling cargo at JKIA

Kenya Revenue Authority collected Sh49.06 billion from customs in the 2022/2023 financial year, it has announced.

This is against a target of Sh46.99 billion, thanks to the hospitality sector rebound.

The collection represents a 10.12 per cent growth in revenue collection at the Jomo Kenyatta International Airport (JKIA), compared to the previous year.

“It further represents a 104 per cent performance against the financial year revenue target,” the taxman said in a statement.

The taxman said cargo handled at the JKIA significantly increased during the period.

“This enabled KRA Customs and Border Control (C&BC) department collect Sh5.39 billion against a target of Sh4.81 billion from air navigation service charge, which is levied on planes landing at the airport.” KRA said.

It reflects a performance rate of 112 per cent and a 31.9 per cent growth in revenue, compared to the same period the previous financial year.

Revenue collected from air passenger service charge at JKIA also recorded a growth of 53.3 per cent.

The taxman collected Sh11.57 billion from the air passenger services charge at JKIA, against a target of Sh8.04 billion. This is a 114 per cent performance rate.

The growth is attributed to an increase in the number of air passengers during the period.

Data by the Kenya National Bureau of Statistics shows the number of passengers handled at Kenyan airports increased from 6.7 million in 2021 to 10.2 million in 2022.

This was on the back of increased number of international and domestic passengers by about 80.4 per cent and 32.1 per cent, respectively.

“Passenger traffic at JKIA increased by 65 per cent from 3.97 million in 2021 to 6.56 million in 2022,” according to KNBS.

KRA also attributes the above-target performance to the various initiatives that have  facilitated passengers and seamless clearance of cargo.

The initiatives  include the installation of baggage and cargo scanners, as well as introduction of  automated risk management module in iCMS.

The scanners facilitate faster clearance  of cargo at the ports of entry as it now takes a minute to scan a container and  approximately five minutes to analyse an image of the cargo contents.

"This has in turn  substantially addressed congestion at the entry points," KRA said.

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