The Kenya Revenue Authority (KRA) has generated a total of Ksh 1.030 Trillion as of 8th December 2023, with the addition of customs revenue collection.
According to the KRA, the taxman was able to generate a total of Kshs 72.116 Billion from customs collection, an amount that indicates a growth of 17.6% compared to the Kshs 61.322 Billion that was collected in November 2022.
KRA Generates One Trillion: The Trajectory
In November, the KRA generated an amount of 180.714 Billion up from the Kshs 156.095 Billion that was collected in November 2022. It is working on collecting 2.787 Trillion by June 2024.
Revenue collection in Kenya has experienced substantial growth in the last 5 months after the KRA generated Kshs 963.746 Billion up from the Kshs 856.646 Billion that was collected in the same period last financial year. This shows a growth of 12.5%.
However, despite the growth experienced, the collection was impacted by the performance of key economic indicators that directly moved revenue collection.
Among these indicators is the substantial depreciation of the Kenya shilling against the US dollar by 24.7% in November 2023 and 22% in July – November 2023.
This, and the rising prices of key products like oil usually drive down import demand.
While in Kenya Shilling terms, import values rose by 36.0% and 11.0% in November 2023 and July – November 2023 respectively, in dollar terms, the growth for the month was subdued to 9.0%, and a fall of 9.2% was recorded incrementally.
Another factor that affected revenue collection was low domestic demand as shown by the slowed Purchasing Managers Index (PMI) that averaged 47.18 points in July – November 2023 down from 48.66 points in July – November 2022.
The rise in lending rates and interbank rates, has weakened credit extension, particularly to the private sector, which has led to a fall in Bank profitability by 4.9% as at September 2023.
In the area of Oil taxes, the KRA was able to collect Kshs 27.943 Billion, indicating a growth rate of 42.5% over Kshs 19.610 Billion generated in the same period in the last financial year.
This was made possible due to growth in both overall oil volumes and values by 36.7% and 49.5% respectively.