Home Business Seven months tax revenues up 14pc to Ksh 1.4T

Seven months tax revenues up 14pc to Ksh 1.4T

Treasury PS Dr. Chris Kiptoo
Treasury PS Dr. Chris Kiptoo

Tax collection for the seven months period to January this year has grown 14.4pc to stand at Ksh 1.499 trillion according to the National Treasury.

While appearing before the Departmental Committee on Finance and National Planning on processing of the 2024 Budget Policy Statement, Treasury Principal Secretary Dr Chris K. Kiptoo said the improved collection by the Kenya Revenue Authority (KRA) was on the back of enhanced tax administration the government has undertaken in the current 2023/2024 fiscal year.

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“Over the course of the fiscal year, revenue performance is anticipated to improve in light of improved tax administration,” said the Dr Kiptoo.

Kiptoo said the government targets to ensure KRA enhances tax collection through scaling up use of technology to seal leakages. This will involve enhancements of iTax and Integrated Customs Management System (iCMS) and usage of Tax Invoice Management System (e-TIMS).

According to the 2024 BPS, revenue collection including Appropriation-in-Aid is projected at Ksh 3.44 trillion equivalents to 19.1pc of the country’s gross domestic product. Of this, ordinary revenue is projected at Ksh 2.95 trillion equivalents to 16.4pc of GDP.

In the 2024/25 fiscal year total expenditure is projected at Ksh 4.19 trillion equivalent to 23.2pc of GDP out of which recurrent expenditure will amount to Ksh 2.86 trillion while development expenditure will amount to Ksh 877.8 billion.

County government are projected to receive transfers totaling Ksh 446 billion comprising Ksh 391.1 billion as equitable share and Ksh 54.9 billion in additional allocations and Ksh 5 billion for Contingency Fund.

The resulting fiscal deficit including grants of Ksh 703.9 billion will be financed by a net external financing of Ksh 326.1 billion and a net domestic financing of Ksh 377.7 billion.
The growth for 2024 is projected to remain strong at 5.5 percent compared to the 4.8 percent growth in 2022.

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