KRA’S 2 Trillion Historic Hit on Revenue Collection

A trillion mark it is! Kenya Revenue Allocation (KRA) hits its first ever two trillion mark in the country’s revenue collection. This record surpassed the authority’s set target for 2021/2022 financial year by close to Sh.150 billion.

This is the first time in 14 years KRA is surpassing its set target even after an upward revision of its previous targets.

The Authority collected Sh.2.03 trillion in the financial year under review, against its set target of Sh.1.88 trillion, and two revised targets of Sh.1.91 trillion and Sh.1.97 trillion respectively. A sum of 22.3% improvement in revenue collection compared to the previous financial year where it collected a total of Sh.1.66 trillion.

“This is the first time the authority has surpassed its original target in 14 years, since the 2007/2008 financial year after the previous target revisions were adjusted downwards,” said KRA Commissioner General Githii Mburu.

This success was due to an extensive use of various data and intelligence services by KRA to spy on and unearth tax evaders which has led to improved voluntary compliance and tax base expansion.

The law permits the Authority to fully utilize various databases to pursue suspected tax cheats which saw at least 17,038 tax evaders voluntarily come forward to pay their dues.

KRA has enhanced its collection efforts among other things by deploying more than 500 intelligence officers to gather information on tax evaders and fully utilizing data to track non-payment of income taxes by businesses. 

During the financial year under review, Domestic Taxes collected Sh.1.297 trillion against a set target of Sh.1.267 trillion which translates to a performance rate of 102.4%  with a surplus of Sh.30.445 billion.

Value Added Tax (VAT) collections amounted to Sh.244.7 billion, a 24 percent growth whereas Pay As Earn (P.A.Y.E) marked a collection of Sh.455.129 billion. 

A Voluntary Tax Disclosure Program (VTDP) rolled out by the authority which commenced on January 1,2021 realized Sh.8.55 billion in revenue collection from 17,038 applications in the 2021/2022 financial year.

The authority states that the Tax Invoice Management System (TIMS), which is currently being rolled out, will enhance tax compliance and close monitoring on loopholes exploited by tax evaders.