- KRA recorded an 11.1 per cent growth in revenue collection for the financial year 2023-24.
- This is after KRA collected Sh2.407 trillion compared to Sh2.166 trillion in the previous financial year.
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The Kenya Revenue Authority(KRA ) has collected Sh2.407 trillion in revenue in the Financial Year(FY) ended June 2024 translating to an 11.1 per cent growth compared to the previous FY.
However, the taxman missed its revenue target for the Financial Year 2023-24 by Sh130 billion.
KRA targeted to collect Sh2.787 trillion by the end of the Financial Year 2023-24, however, the Supplementary Budget II 2023-24 revised the target downwards by Sh250 billion, making the target Sh2.537 trillion.
The taxman collected Sh2.166 trillion in 2022-23 but also missed the revenue target by Sh107 billion.
As of December 8, 2023, KRA had hit the Sh1 trillion mark for the 2023-24 Financial Year.
The Authority said the growth translates to a performance rate of 95.5 per cent against the target.
The taxman said the revenue was occasioned by multiple economic shocks.
The factors included the depreciation of the Kenya Shilling against the US Dollar, rising bank lending rates and international conflicts that disrupted supply chains, among others.
According to the Authority, these factors affected revenue mobilisation efforts.
"KRA collects revenue on behalf of other government agencies, mainly at the ports of entry. These include Road Maintenance Levy, Air Passenger Service Charge, Aviation Revenue, Petroleum Development Fund, Petroleum Regulatory Levy, and Housing Levy, amongst others," the statement read.
In December 2023, KRA cited the significant depreciation of the Kenya shilling against the US dollar by 24.7 per cent in November 2023 and 22.0 per cent in July – November 2023.
"This, coupled with increasing prices of key products like oil has an effect of driving down import demand. While import values (in Kenya Shilling terms) grew by 36.0 per cent and 11.0 per cent in November 2023 and July – November 2023 respectively, in dollar terms, the growth for the month was subdued to 9.0 per cent, and a decline of 9.2 per cent was recorded cumulatively," KRA explained.
On Monday, KRA said during the financial year ending June 30, 2024, it collected agency revenues amounting to Sh184.036 billion, reflecting a growth of 34.9 per cent compared to the last financial year.
KRA added that during the financial year, Domestic Taxes registered a revenue growth of 14.4 per cent after collecting Sh1.611 trillion against a target of Sh1.677 trillion.
This translates to a performance rate of 96.1 per cent.
KRA said the domestic VAT collection stood at Sh314.157 billion against a target of Sh307.823 billion, reflecting a growth of 15.3 per cent compared to the previous year.
The Authority said Pay As You Earn (P.A.YE) registered a growth of 9.7 per cent after collecting Sh543.186 billion.
As of June 30, 2024, a total of 8,046,029 tax returns were filed, against a target of 7,187,932.
This represents a growth of 26 per cent compared to the 6,385,523 tax returns filed last year.