KRA Q1 Revenue Collection Grows 8.4% to Ksh586.9B Despite Missing Target

The Kenya Revenue Authority (KRA) collected 8.4 percent more revenue in the first quarter of the current fiscal year (FY) than in the same period last year, totaling Sh586.9 billion.

According to the most recent taxman estimates, revenue for the fiscal year 2023-24 increased from Sh541.6 billion in the fiscal year 2022-23.

KRA attributes the increased collection to real-time tax collection from gaming and betting companies, whose withholding tax and excise duty increased by 67 percent during the review period.

“The rollout of tax amnesty program also enhanced collection after KRA collected Sh3.4 billion since September 1, 2023,” KRA said.

However, it fell short of its Sh665.9 billion collection target for this period by Sh79 billion.

This is despite daily collections of Sh26 billion, a 23.8 percent increase on a monthly basis.

The failure to meet the target is attributed to the public sector’s inadequate remittance of pay-as-you-earn (PAYE), a major fall of 20.7 percent in installment remittance in the information and communication technology industry, and an unfavorable economic situation.

According to KRA, funding is insufficient to allow the authority to function at its best.

“The allocated Recurrent Funding plus our expected AIA in the year total to Kshs 28.117 Billion which is insufficient to support even the current operations, i.e., staff costs, existing contracted services, and other revenue operational costs up to the end of the financial year,” said the Commissioner General of KRA.

Despite this, the tax collector is hopeful about raising Sh2.768 trillion in this fiscal year, a 27.8 percent increase from Sh2.166 in the previous fiscal year.

KRA’s aim for Q2 is to raise Sh684.5 billion, or 28.8 percent of the required growth.