NAIROBI, Kenya, Feb 13 – Overall revenue for the first half of 2017/18 financial year grew by Sh62.5 billion to Sh712.2 billion from Sh649.7 billion recorded in the previous year, while Exchequer Revenue grew more strongly by 10 percent to reach Sh664.77 billion up from Sh 604.27 billion in FY 2016/17.
This growth compares well with the 3-year average Exchequer Revenue growth of 10.5 percent. The overall growth, representing 9.6 percent rise was recorded against the backdrop of a depressed economic climate occasioned by the prolonged election cycle that stretched for the better part of the calendar year 2017.
“The election process adversely affected business confidence and depressed consumer spending, leading to a weak performance in consumption related taxes especially in the non-essential goods sectors including beverages,” says KRA Commissioner General, John Njiriani.
He adds that the delayed normalisation of the Government’s fiscal programme also adversely impacted both public and private sector tax remittances, the latter due to delayed settlement of bills.
Overall, economic growth for the period slowed to an estimated 4.4 percent against the 6.0 percent used in Budget Policy Statement projections.
KRA is now focusing on leveraging the improved business environment in the second half following the conclusion of elections, a development expected to lead to a normalised Government fiscal programme and improved business climate.
“For H2, the target is to raise Sh798.84 billion, as part of the drive to generate resources to fund the ambitious Big 4 Agenda announced by President Uhuru Kenyatta,” said Njiriani.