KRA Clarifies Revenue Collection Shortfall

An undated image of Times Tower which houses Kenya Revenue Authority offices
An undated image of Times Tower which houses Kenya Revenue Authority offices.
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The Kenya Revenue Authority(KRA) on Monday, April 10, issued a clarification on reports regarding its revenue mobilisation.

In a statement signed by Acting Commissioner General Rispah Simiyu, the authority stated that it utilised modern technology that worked efficiently that ensured strict surveillance leaving no room for revenue diversion.

In addition, the authority stated that it had put measures in place to mobilise and secure revenue for national development.

"KRA's attention has been drawn to various statements on different media platforms on its operations and in particular revenue mobilisation.

Kenya Revenue Authority
Kenya Revenue Authority building at Times Towers
Kenyans.co.ke

“KRA has invested in modern technology which works as the revenue collection and settlement system from source to the exchanger. With this in place, there is no room for revenue diversion as strict surveillance plugs revenue loopholes,” the statement read in part.

Further, the taxman noted that it had kept pace with revenue collection compared to previous years stating that at the end of March 2023, it had collected Ksh1.554 trillion.

"As at the close of March 2023, revenue collection averaged 95.1 per cent on original target and 93.4 per cent on Supplementary target, representing a collection of Ksh1.554 trillion and a year on year 8 per cent growth.

“KRA continues being a professionally managed public organisation comprising of competent staff, management and board leadership delivering their mandate within the staff code of conduct,” the statement added. 

Additionally, KRA noted that it was committed to bridging the deficit on target through the implementation of Revenue Enhancement Initiative(REI).

"REI include the roll-out of eTIMS for efficient and effective VAT collection, integration of KRA systems with betting companies leading to the improved collection in Excise Tax on betting and withholding Tax on winnings.

"Amicable settlement of tax disputes through Alternative Disputes Resolution(ADR) and Tax Base Expansion aimed at bringing more taxpayers into the tax bracket," it added.  

The clarification came on the backdrop of concerns about financial constraints faced by the government that were addressed by Treasury Cabinet Secretary Njunguna Ndung'u on April 8, who noted that the matter would be addressed once there were sufficient resources for both recurrent and development expenditures.

"If you are living in this country, you must be knowing the challenges we have with our resources. It is something we have to resolve. We have a resource constraint. There is no money, and we have to help ourselves.

"When we get the money, all will be possible. We have come far, and that scarcity will end," he stated

Following reports of the country going bankrupt, the Azimio la Umoja coalition, led by minority leader Opiyo Wandayi, called for an audit of government coffers, even as some MPs claimed they had not been paid.

However, Deputy President Rigathi Gachagua on Sunday, April 9,  disclosed that the National Treasury prioritised settling matured loans which caused a delay in the release of salaries for public servants.

A photo of Deputy President Rigathi Gachagua and Second Lady Dorcas Rigathi attend a service at the PCEA Ngorano Center Church in Mathira on April 9,  2023.
A photo of Deputy President Rigathi Gachagua attending a service at the PCEA Ngorano Center Church in Mathira on April 9, 2023.
Rigathi Gachagua