The Kenya Revenue Authority (KRA) has collected Ksh476.646 Billion, surpassing the Financial Year 2021-2022, Quarter One (July – September 2021) revenue target of Ksh461.653 billion by Ksh14.992 billion. The performance reflects sustained revenue growth in the first three months of the year, with a performance rate of 103.2 per cent and growth of 30 per cent.
Despite the slow economic growth, KRA commenced the new financial year on an upward trajectory, after surpassing its July 2021 revenue target with a surplus of Ksh311 million, after a revenue collection of Ksh152.854 Billion against a set target of Ksh152.543 billion, reflecting a performance rate of 100.2 per cent.
KRA maintained the upward trend in August 2021, collecting Ksh138.906 billion, a performance rate and growth of 103.6 per cent and 29.5 per cent respectively, above the set target and recording a surplus of Ksh4.816 billion. The Authority further surpassed the September 2021 target of Ksh175.02 billion by Ksh9.886 Billion, after a collection of Ksh184.886 billion, thereby registering a performance rate of 105.6 per cent and a growth of 28.6 per cent.
The good revenue performance is a reflection of improving macro-economic environment, relaxation of Covid-19 containment measures, and sustained implementation of enhanced compliance efforts by the Authority. The Gross Domestic Product is expected to grow by 6.3 percent in FY 2021/22 as per 2021 Budget Policy Statement, compared to a contraction of 0.3 per cent in 2020.
During the first quarter of the Financial Year, Customs & Border Control (C&BC) sustained its excellent performance after collecting Ksh173.241 Billion against a target of Ksh161.844 billion, reflecting a revenue surplus of Ksh11.397 billion. The Customs & Border Control recorded a growth of 25.4 per cent in the period under review. KRA attributes Customs & Border Control performance to 31.8 per cent growth in non-oil taxes and 15.0 per cent growth in petroleum taxes. Non-oil taxes registered a collection of Ksh112.438 billion against a target of Ksh105.002 billion with a surplus of Ksh7.436 billion, while petroleum taxes amounted to Ksh60.803 billion against a target of Ksh56.842 billion posting a surplus of Ksh3.961 billion.
Domestic Taxes performance improved, with a 32.9 percent growth compared to a similar period last year. The Domestic revenue collection stood at Ksh302.145 Billion against a target of Ksh298.626 billion. This translates to a surplus of Ksh3.519 billion and a performance rate of 101.2 per cent.
Pay As You Earn (PAYE) registered a performance rate of 104.2 per cent in the first quarter after a collection of Ksh107.787 billion, against a target of Ksh103.369 billion resulting to a surplus of Ksh4.391 billion. The performance was mainly driven by gradual growth in employment which is a sign of economic recovery.
The Value Added Tax (VAT) collections amounted to Ksh60.188 Billion against a target of Ksh59.173 billion, resulting to a surplus of Ksh1.015 billion and recording a growth of 44.5 per cent. The good performance was primarily attributable to enhanced compliance efforts by the Authority and economic recovery.
Corporation tax collection stood at Ksh54.330 billion, which is a growth of 21.9 per cent over the first quarter compared to 3.7 per cent achieved in the past financial year (FY 2020/21). This performance was driven by increased remittance from Energy, Agriculture, Manufacturing and Transport sectors that grew by 122.0 per cent, 103.9 per cent, 83.7 per cent and 107.4 per cent respectively.
Withholding Tax totalled Ksh36.053 billion, representing a growth of 11.9 per cent over the first quarter of 2020/21, which was an increase from a growth of 3.8 per cent achieved in the last financial year. This further signals economic recovery from the adverse impact of Covid-19 pandemic.
Domestic Excise amounted to Ksh15.392 billion, and a growth of 20.7 per cent, over the first quarter last year, compared to a growth of 12.0 per cent recorded in the last financial year. The performance turnaround is attributed to reopening of the economy and enhanced compliance efforts by the Authority. The country is on an economic recovery path with the economy projected to grow by 6.3 percent in FY 2021/22, hence a positive impact on revenue performance.
“KRA continues to drive compliance through investment in modern technology to enhance efficiency in tax mobilisation, with enhanced operational efficiency as embedded in the KRA 8th Corporate Plan. The Authority is optimistic that this investment shall continue to sustain the good performance in revenue mobilisation,” said the taxman.
“We also continue to focus on trade facilitation and enhanced compliance through the implementation of enhanced scanning and intelligence-led verification of import cargo. KRA will also intensify its fight against tax evasion to ensure that no revenue is lost. These among other measures, will continue driving the good performance in revenue collection.”
KRA has also appreciated compliant taxpayers for being resilient and honouring their tax obligations.
“It is through the commitment and dedication of the taxpayers that KRA manages to collect over 93 per cent of the exchequer revenue every year to fund our country’s development agenda,” added KRA.
In a bid to celebrate compliant taxpayers, KRA has dedicated the month of October to carry out activities that honour and appreciate the taxpayers. This year’s Taxpayers Month is anchored on the theme ‘Pamoja Twaweza’ that highlights the collective role and contribution of both taxpayers and KRA towards the country’s economic sustainability.