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 ππ¬π‘π¬. πππ ππ’π₯π₯π’π¨π§ 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 ππ.π% revenue growth, collecting ππ¬π‘π¬. π.πππ ππ«π’π₯π₯π’π¨π§ 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 ππ¬π‘π¬. πππ.πππ ππ’π₯π₯π’π¨π§ against a target of Kshs. 307.823 Billion, reflecting a ππ.π% growth. The growth is attributed to the implementation of the Electronic Tax Invoice Management System (eTIMS).
Domestic VAT average monthly collection stood at ππ¬π‘π¬. ππ.πππ ππ’π₯π₯π’π¨π§ 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.π%, collecting ππ¬π‘π¬. ππ.πππ ππ’π₯π₯π’π¨π§, with strong performance from manufacturers of soft drinks, bottled water, beer, and tobacco. Capital Gains Tax registered a ππ.π% growth, collecting ππ¬π‘π¬. π.πππ ππ’π₯π₯π’π¨π§ against a target of Kshs. 7.710 Billion, a performance rate of 108.7%.
Corporation tax performed at 93.4% with a collection of ππ¬π‘π¬. πππ.πππ ππ’π₯π₯π’π¨π§. This is a growth of 4.9% over the last financial year. P.A.Y.E grew by π.π%, collecting ππ¬π‘π¬. πππ.πππ ππ’π₯π₯π’π¨π§, driven by remittances from private firms and the public sector.
Customs Revenue: Non-oil taxes recorded a growth of π.π% after collecting ππ¬π‘π¬.πππ.ππ ππ’π₯π₯π’π¨π§. On the other hand, Oil taxes grew by ππ.π% after collecting ππ¬π‘π¬. πππ.ππ ππ’π₯π₯π’π¨π§.
The revenue growth is attributed to the implementation of key strategies as enshrined in KRAβs 8th Corporate Plan. Some of these strategies include:Β
- Tax Base Expansion (TBE)
TBE initiatives led to the recruitment of π,πππ,πππ additional taxpayers and the collection of ππ¬π‘π¬.ππ.ππ ππ’π₯π₯π’π¨π§. Some of the initiatives under the TBE include the recruitment of landlords under the Monthly Rental Income (MRI) programme.Β
- 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
- Tax Amnesty
Through the tax amnesty programme, KRA collected ππ¬π‘π¬. ππ.π ππ’π₯π₯π’π¨π§. This is after 2,617,111 taxpayers were granted amnesty in the Financial Year 2023/2024.
- Dispute Resolution Framework
The framework enhanced revenue collection from Litigation, Alternative Dispute Resolution (ADR), and Tax Appeals Tribunal (TAT). This enabled KRA to collect ππ¬π‘π¬. ππ.π ππ’π₯π₯π’π¨π§ from 1,184 concluded cases.
- 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.
- 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,πππ,πππ 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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