KRA surpasses revenue collection target by Sh6.779bn

Kenya Revenue Authority (KRA) surpassed its revenue collection targets for the month of October by Sh6.779 billion (103.3 per cent), a report of the taxman shows.

The report said Customs and Border Control (C&BC) revenue surpassed the target by Sh941 million (or 101.3 per cent) in the month.

“Collections of Sh73.165 billion in October 2023 are the highest monthly C&BC collection in KRA history. Second highest collection of Sh72. 809 billion was realised in August 2023,” KRA said.

It noted that oil taxes recorded a surplus of Sh3.816 billion, with above target performance being recorded by Road Maintenance Levy (Sh4.289 billion), excise on oil (Sh198 million), PRL (Sh187 million), and RDL oil (Sh92 million).

KRA said the surplus is explained by growth in overall oil volumes by 30.7 per cent driven by growths in petrol, diesel and ‘other’ oil volumes by 62.3 per cent, 4.2 per cent and 46.1 per cent respectively.

It added that the Road Maintenance Levy good performance is supported by an increase in the levy on fuel from Sh18 per litre to Sh25 per litre.

KRA further revealed that Air Passenger Service Charge, RDL ‘non-oil' and Transit Road Toll surpassed their respective targets by Sh131 million, Sh550 million and Sh61 million, respectively.

“In particular, Air Passenger Service charge performance was driven by growth in visitor arrivals through JKIA and MIA by 5.1 per cent, i.e., from 1,069,600 visitors in January-August 2023 to 1,124,922 passengers in January-August 2024,”

KRA noted that the Domestic Taxes Department (DTD) surpassed the target by Sh5.973 billion (or 104.6 per cent) in the month.

“Withholding tax surpassed the target by Sh2.593 billion due to good performance from both the private sector (mainly Interest, Dividends, Pension or Retirement Annuity, etc) and Public Sector with growths of 27.4 per cent and 41.9 per cent respectively,” the taxman revealed.

It added that PAYE had a surplus of Sh689 million attributed to remittance from public sector that surpassed its target by Sh1.903 billion (and growth of 16.4 per cent).

It said Corporation Tax had a surplus of Sh155 million due to enhanced remittance of the first installment and BOT from a number of sectors: Electricity & Oil (Government agencies); manufacturing (beer, wines & spirits, soft drinks); wholesale & retail trade (supermarkets, retail outlets); accommodation and food services; real estate among others.

KRA added that overall agency revenue surpassed target by Sh1. 863 billion with Housing Levy surpassing target by Sh1.826 billion.