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KRA Records Significant 11.1% Growth in Revenue Collection for FY 2023/2024.

The Kenya Revenue Authority (KRA) has reported an impressive 11.1% increase in revenue mobilization for the financial year 2023/2024, marking a significant growth from the previous year’s 6.4%. The KRA collected Kshs. 2.407 trillion, up from Kshs. 2.166 trillion in the last financial year, demonstrating a performance rate of 95.5% against the target.

KRA Records 𝐊𝐬𝐑𝐬. πŸπŸ’πŸŽ 𝐁𝐒π₯π₯𝐒𝐨𝐧 growth in Revenue Collection despite a challenging economic environment. The fiscal year was marked by numerous economic challenges, including the depreciation of the Kenyan Shilling against the US Dollar, rising bank lending rates, and disruptions in global supply chains. Despite these hurdles, the KRA’s strategic initiatives and robust measures led to this noteworthy achievement.

KRA collects both Exchequer and Agency revenues. Exchequer revenue goes to the National Treasury, while Agency revenue is collected for other government agencies, including the Road Maintenance Levy, Air Passenger Service Charge, Petroleum Development Fund, and Housing Levy.

Exchequer revenue grew by 9.5% after the collection of Kshs. 2.223 Trillion, with a performance rate of 95.8%. Agency revenues amounted to Kshs. 184.036 Billion, reflecting a growth of 34.9%.

Domestic Taxes registered a πŸπŸ’.πŸ’% revenue growth, collecting 𝐊𝐬𝐑𝐬. 𝟏.πŸ”πŸπŸ 𝐓𝐫𝐒π₯π₯𝐒𝐨𝐧 against a target of Kshs. 1.677 Trillion, a performance rate of 96.1%. Β Customs collected Kshs. 791.368 Billion, a 4.9% growth. Customs performance was affected by exemptions on certain food commodities and low consumption of petroleum products, with exemptions growing by 23.8%.

Domestic VAT collection stood at 𝐊𝐬𝐑𝐬. πŸ‘πŸπŸ’.πŸπŸ“πŸ• 𝐁𝐒π₯π₯𝐒𝐨𝐧 against a target of Kshs. 307.823 Billion, reflecting a πŸπŸ“.πŸ‘% growth. The growth is attributed to the implementation of the Electronic Tax Invoice Management System (eTIMS).

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Domestic VAT average monthly collection stood at 𝐊𝐬𝐑𝐬. πŸπŸ‘.πŸ“πŸ“πŸ— 𝐁𝐒π₯π₯𝐒𝐨𝐧 in the first half of FY 2022/23, before increasing to a monthly average of Kshs. 26.250 Billion in the second half of FY 2022/23 when eTIMS rollout was scaled up. Currently, monthly average domestic VAT collections stand at Kshs. 28.680 Billion in FY 2023/24.

Domestic Excise grew by πŸ–.𝟏%, collecting 𝐊𝐬𝐑𝐬. πŸ•πŸ‘.πŸ”πŸπŸ’ 𝐁𝐒π₯π₯𝐒𝐨𝐧, with strong performance from manufacturers of soft drinks, bottled water, beer, and tobacco. Capital Gains Tax registered a πŸ’πŸ—.πŸ“% growth, collecting 𝐊𝐬𝐑𝐬. πŸ–.πŸ‘πŸ–πŸ 𝐁𝐒π₯π₯𝐒𝐨𝐧 against a target of Kshs. 7.710 Billion, a performance rate of 108.7%.

Corporation tax performed at 93.4% with a collection of 𝐊𝐬𝐑𝐬. πŸπŸ•πŸ–.πŸπŸ“πŸ” 𝐁𝐒π₯π₯𝐒𝐨𝐧. This is a growth of 4.9% over the last financial year. P.A.Y.E grew by πŸ—.πŸ•%, collecting 𝐊𝐬𝐑𝐬. πŸ“πŸ’πŸ‘.πŸπŸ–πŸ” 𝐁𝐒π₯π₯𝐒𝐨𝐧, driven by remittances from private firms and the public sector.

Customs Revenue: Non-oil taxes recorded a growth of 𝟏.πŸ—% after collecting 𝐊𝐬𝐑𝐬.πŸ’πŸ—πŸŽ.πŸ”πŸŽ 𝐁𝐒π₯π₯𝐒𝐨𝐧. On the other hand, Oil taxes grew by 𝟏𝟎.πŸ‘% after collecting 𝐊𝐬𝐑𝐬. πŸ‘πŸŽπŸŽ.πŸ•πŸ• 𝐁𝐒π₯π₯𝐒𝐨𝐧.

The revenue growth is attributed to the implementation of key strategies as enshrined in KRA’s 8th Corporate Plan. Some of these strategies include:Β 

  1. Tax Base Expansion (TBE)

TBE initiatives led to the recruitment of 𝟏,πŸπŸ’πŸ•,πŸ“πŸ’πŸ‘ additional taxpayers and the collection of 𝐊𝐬𝐑𝐬.πŸπŸ’.πŸ”πŸ 𝐁𝐒π₯π₯𝐒𝐨𝐧. Some of the initiatives under the TBE include the recruitment of landlords under the Monthly Rental Income (MRI) programme.Β 

  1. Tax at Source

Electronic Tax Invoice Management System (eTIMS) which has minimized VAT fraud and increased tax revenue.

Integration of Betting and Gaming Companies The sector registered a growth rate of 26.2% after KRA collected Kshs. 24.269 Billion in FY 2023/24 compared to Kshs. 19.224 Billion in the previous year from Excise on Betting Services, Withholding tax on winnings from betting and gaming, and Betting tax

  1. Tax Amnesty
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Through the tax amnesty programme, KRA collected 𝐊𝐬𝐑𝐬. πŸ’πŸ‘.πŸ— 𝐁𝐒π₯π₯𝐒𝐨𝐧. This is after 2,617,111 taxpayers were granted amnesty in the Financial Year 2023/2024.

  1. Dispute Resolution Framework

The framework enhanced revenue collection from Litigation, Alternative Dispute Resolution (ADR), and Tax Appeals Tribunal (TAT). This enabled KRA to collect 𝐊𝐬𝐑𝐬. 𝟐𝟏.πŸ— 𝐁𝐒π₯π₯𝐒𝐨𝐧 from 1,184 concluded cases.

  1. Anti-Corruption

883 cases were reported through the iWhistle system. This led to the recovery of Kshs. 4.22 Billion. During the same period, 255 staff were investigated, 41 lifestyle audits were conducted, and 2,100 background checks were completed.

  1. Debt Programme

KRA collected Kshs. 103.390 Billion in FY 2023/2024 from the debt programme. This performance is attributable to follow-ups on demand notices and the debt installment plans agreed upon with taxpayers.

As of 30th June 2024, πŸ–,πŸŽπŸ’πŸ”,πŸŽπŸπŸ— taxpayers filed their annual returns. This represents a growth of 26% compared to the 6,385,523 taxpayers who filed their returns last year.

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