The Kenya Revenue Authority (KRA) surpassed its revenue target collection for the financial year July 2020 - June 2021.
A statement released by the Authority on Saturday, July 3, indicated that KRA surpassed it's target with a surplus of Ksh16.808 billion.
KRA had set a revenue target of Ksh1.652 trillion in the 2021 Budget Policy Statement.
"Revenue collection in the financial year 2020/21 reached a new record of Ksh1.669 Trillion compared to Ksh1.607 Trillion collected in the financial year 2019/20," reads the statement in part.
The revenue collection more than doubled in the last 10 years, from Ksh707 billion in the financial year 2011/12 to Kshs 1.669 trillion in the financial year 2020/21. This represented a growth of 136% in the last ten years.
The Domestic Taxes Department (DTD) collected Ksh1.039 trillion during the financial year which translated to a performance rate of 99.8%.
On the other hand, the Customs and Border Control (C&BC) collected Ksh 624.77 billion surpassing its target of Kshs 606 Billion. This represented a performance rate of 103.0% and recorded a surplus of Ksh 18.248 billion.
The PAYE tax head declined by 9.3% in financial year 2020/21. This is a drop from an average growth of 2.0% recorded during the same time last year.
"The decline was driven by reduction in employment emanating from measures taken by mainly private firms to reduce operating costs as a result of the Covid-19 pandemic," reads the statement in part.
In addition, the tax head was affected by the reduction of the top PAYE rate from 30% to 25% in the first half of the year and a 100% tax relief for persons earning below Ksh 24, 000 per month.
Domestic Excise recorded recorded a growth of 12.0% in FY 2020/21, compared to a decline of 6.4% recorded in the last financial year.
"The performance turnaround is attributed gradual reopening of the economy and extended operating hours for bars and restaurants."
The Authorities 8th Corporate Plan targets to collect Ksh 6.831 trillion by the end of financial year 2023/2024.
