By Samuel Migele.
The Kenya Revenue Authority (KRA) has posted a revenue collection growth of up to Ksh 2.17 trillion in the financial year (FY) 2022/2023. This is a 6.7% growth from the FY 2021/2022 where the taxman posted 2.031 in revenue collection, a 135 billion Kenyan shillings surpass from the previous financial year.
However, the taxman has missed the revenue target for this financial year ended June by a stunning 107 billion Kenyan shillings, recording a 95.3% revenue performance uptake. The taxman has over the years missed revenue targets and is under more pressure from President William Ruto to collect Ksh. 2.57 trillion in the FY 2023/2024 by sealing revenue leaks and widening the tax base. It is yet to be seen again if this will be achieved with the finance act facing legal hurdles.
Acting Commissioner General Madam Rispah Simiyu emphasized the influence of the current economic circumstances in tax administration in her remarks following the release of the revenue results report.
“The revenue performance reflect the prevailing economic indicators, especially the projected GDP growth of 5.8 percent in the financial year 2022/2023 (Budget Policy Statement 2023.), compared to a growth of 6.5 percent in financial year 2021/2022.” Madam Rispah Simiyu said.
The taxman also confirmed that Ksh 6.3 million Kenyans filed their returns for the year 2022 and that it had collected Ksh 136.4 billion on behalf of government agencies, representing a 3.7% from the previous financial year. Inflation rate passed the forecast rate to 8.7% up from 6.2%.
Revenue growth has steadily increased over the last five years but meeting the target has proved over-ambitious for the Times Towers chaps.