Kenya Revenue Authority (KRA) maintained an upward trajectory in revenue collection after recording a 6.7 per cent growth in the financial year 2022/2023.
Despite an economic slowdown occasioned by an unfavourable global fiscal environment, KRA recorded a revenue collection of Ksh2.166 trillion for the period July 2022 – June 2023 compared to Ksh2.031 trillion in the last financial year.
The collection for the financial year 2022/2023 was therefore higher than what was collected in the financial year 2021/2022 by Ksh135 Billion.
Revenue collection progressively increased in the last 5 years from Ksh1.58 trillion in FY2018/2019 to Ksh 2.166 trillion in FY2022/23, representing a growth of 37 per cent (Ksh586.259 billion) in the last five years.
However, the revenue performance was affected by the slowed domestic economic growth in 2022 which went down to 4.8 percent from 7.6 percent in 2021. This mirrors the World’s real GDP growth that decelerated to 3.4 per cent in 2022 from a growth of 6.0 per cent in 2021.
The decelerated domestic economic growth was due to the adverse impact of multiple shocks that affected the economy, including prolonged drought, and international conflicts that disrupted the supply chain among others. The revenue collection signifies a performance rate of 95.3 per cent against the target.
This was the second year in a row that KRA surpassed the two trillion mark.
In regard to the exchequer, revenue grew by 6.9 per cent. This is after KRA collected Ksh2.030 trillion compared to Ksh1.900 trillion collected in the previous financial year. This translates to a performance rate of 95.1 per cent against the target.
Exchequer revenue constitutes all the mainstream Government revenues, i.e., Taxes on International Trade and Transactions, Excise taxes, Taxes on Income, Profits and Capital gains, Taxes on goods and services, and Property taxes.
KRA is also mandated to collect revenue on behalf of other government agencies mainly at the ports of entry. These include Road Maintenance Levy, Air Passenger Service Charge, Aviation Revenue, and Petroleum Development Fund amongst other levies.
During the financial year ending June 30th 2023, KRA collected Ksh136.390 Billion on behalf of the agencies reflecting a growth of 3.7 per cent compared to the last financial year.