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KRA tax collection crosses Ksh 1 trillion

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The Kenya Revenue Authority (KRA) says it has collected Ksh 1.03 trillion in the period to December 8, 2023 supported by increases in customs revenue from oil imports.

The collection which is 37pc of total collection target for 2023/24 financial year was aided by customs revenue collections which increased by 17.6pc to Ksh 72.1 billon in November compared to Kshs 61.3 in November last year.

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“The good performance is attributed to oil taxes that collected Ksh 27.943 billion, translating to a growth rate of 42.5pc over Ksh 19.610 billion collected in the same period in the last financial year. The good performance by oil taxes was mainly driven by growth in both overall oil volumes and values by 36.7pc and 49.5pc respectively,” said KRA.

The increase s also attributed to a hike on Value Added Tax on fuel from 8pc to 16pc.

In the month of November, collection rose by 15.8pc to Ksh 180.7 billion up from Ksh 156.1 billion collected in November 2022.

“Revenue collection has progressively increased in the last 5 months (July –November 2023/24) after KRA collected Ksh 963.746 billion compared to Ksh  856.646 billion collected in the same period last financial year, representing a growth of 12.5pc,” the authority noted.

Domestic taxes grew 14.7pc to Kshs 108.2 billion last month compared to Ksh 94.3 billion netted over the same period last year.

Nonetheless, KRA says despite the growth, collection is still being hit by reduced demand among consumers due to the depreciation of the shilling which reached 24.7pc in November and interest rate hikes which has also reduced orders by firms.

KRA is expected to collect at least Ksh 2.8 trillion in the current financial year.

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