Kenya Revenue Authority (KRA) plans to raise a total of Shs 798.84 billion during the second half of the financial year 2017/2018 to fund the Jubilee government “Big Four” agenda.
The Big Four agenda is President Uhuru Kenyatta’s and the Jubilee government’s economic transformative blue print which is designed to provide Kenyans with affordable housing, healthcare, manufacturing and food security.
During the first half (H1) of 2017/2018 KRA managed to raise revenue amounting to Sh. 712.2 billion from Sh. 649.7 billion recorded the previous year, a rise of 9.6 percent, against the backdrop of a depressed economic climate occasioned by the prolonged election cycle.
In a press statement sent to newsrooms, KRA Commissioner General John Njiraini said the revenue will be raised through aggressive debt collection which targets Sh. 15.3 billion, a revamped rental income programme which is expected to net at least 20,000 landlords and enhancement of the cargo scanning by customs at the Mombasa Port.
Njiraini said during the first half, the Authority managed to grow the exchequer revenue by 10 percent to reach sh. 664.77 billion up form sh. 604.27 billion in financial year 2016/2017.
He however, noted that the overall economic growth for the period slowed to an estimated 4.4 percent against the 6.0 percent projected in the Budget Policy Statement due to the 2017 general elections.
“The prolonged the electioneering period affected business confidence and depressed consumer spending, thereby leading to weak performance in consumption of taxes in the non-essential goods sectors including beverages,” he added.
The Commissioner General, said the delay in normalisation of the government‘s fiscal programme adversely impacted on both public and private sector tax remittances due to delayed settlement of bills.
On Valued Added Tax, Njiraini announced that the sector recorded a growth of 7.5 percent with most of the revenue coming from telecommunications, transport and energy, adding that agriculture, manufacturing, construction and mining recorded a depressed growth.
He said the remittances from the main excise sectors of beer, tobacco and spirits declined by 8.4 percent in the first half which he attributed to the drop in volumes, adding that there have been indications of recovery since January this year by a recorded growth of 6.8 percent and 1.8 percent for alcohol and tobacco respectively.
The statement further states that customs recorded an overall growth of 76.7percent with non-oil collections, accounting for about 70 percent of revenue growing at 8.1 percent.
He attributed the improved performance at KRA to the tighter enforcement in benchmarking of cargo values that addressed under evaluation, as well as the use of scanners, stricter application of cargo auction processes which he said enabled the authority to increase an average daily collection for non-oil revenue from Sh. 1.126 billion in HI of FY 2016/17 to Sh. 1.257 billion in H1 of FY 2017/2018, an increase of Sh. 131 million per day.