The Kenya Revenue Authority (KRA) on Monday reported that it had surpassed its Ksh1 trillion revenue collection target by Ksh30 billion as of December 8, 2023, to close the period at Ksh1.030 trillion.
In a statement, the taxman hailed its achievement, stating that the milestone represented an upward momentum in revenue collection after the agency recorded a 15.8% growth in November.
In November, KRA collected Ksh180.714 billion up from the Ksh156.095 billion collected at a similar juncture the previous year.
“Revenue collection has progressively increased in the last five months (July- November 2023/2024) after KRA collected Ksh963.746 billion compared to Ksh963.746 billion compared to Ksh856.646 billion collected in the same period last financial year, representing a growth of 12.5% ” the KRA statement read in part.
KRA, in its statement, noted that despite the solid posting, performance was affected by key performance indicators that directly drive revenue collection.
“These key indicators that significantly impact on revenue performance have generally moved contrary to expectations, with adverse impact on revenue mobilization,” the statement further read.
Among the key performance indicators listed by the KRA include the depreciation of the Kenya shilling which shed 24.7% against the dollar in November 2023 and 22.0% in July 2023.
The KRA also listed the increasing prices of key products like fuel which it indicated has had an effect in driving down import demand.
The taxman also noted that revenue performance was also affected by low domestic demand.
Monday's development represents a minor win for the government which has stated it is banking on its revenues to finance State operations instead of borrowing.
President William Ruto has stressed the need for Kenya to chart a path toward self-sustainability by having Kenyans pay their rightful share of taxes.
"The only way we can be an independent nation is when we can support our developments with our own resources." President Ruto stated in December 2022.
