The Kenya Revenue Authority (KRA) raked in Ksh.201.5 billion to set a new monthly tax collection record in June as the taxman surpassed its annual targets.
New data from the National Treasury Statement of Actual Revenues and Net Exchequer Issues as of June 30 shows collections in June were up by 15.5 per cent from Ksh.174.4 billion in the same month last year.
Cumulatively, exchequer tax revenue stood at Ksh.1.839 trillion in 12 months to June, surpassing the target of Ksh.1.784 trillion by a notable Ksh.55 billion.
This represents a 23.6 per cent year-over-year growth in tax receipts in the 2021/2022 fiscal year
Meanwhile, non-tax revenue in the same period totalled Ksh.78.4 billion but fell behind last year’s total of Ksh.80.8 billion.
The record monthly collection and the surpassing of the set annual target is attributable in part to the full-circle resumption of commerce across the country following the lifting of most COVID-19 restrictions at the end of October 2021.
At the same time, the above-board performance in tax collection is also tied to ongoing efforts by KRA to enhance the tax payment structure including the automation and digitization of processes and services.
The tax man is set to continue with the upward trajectory in tax collection as it continues to partially benefit from the low base effects from the hold of COVID-19 restrictions between July and October last year.
Continued efforts to enhance revenue collection by the taxman alongside revisions to tax rates and the introduction of new taxes will further come in to boost the receipts.
In the new 2022/23 fiscal year, KRA is expected to collect Ksh.2.142 trillion in exchequer ordinary revenue which includes both tax and non-tax receipts.
The targeted collections in ordinary revenue represent an estimated 63.6 per cent of funding for the Ksh.3.3 trillion 2022-2023 budget to June 2023.
For the first time in Kenya’s history, KRA’s annual revenue collection has hit and surpassed the Ksh.2 trillion mark after revenue collection tripled from Ksh.707.36 billion in FY2011/12 to Ksh.2.031 Trillion in FY2021/22.