NAIROBI, Kenya, October 2 – The Kenya Revenue Authority Saturday said it had collected Sh 476.65 billion in the first quarter of the 2021/22 financial year ( July -September), exceeding its target of Sh 461.65 billion.
The agency noted that it had sustained revenue growth over the three months after surpassing targets of the respective months by Shs 311 million, Shs 4.816 billion, and Shs 9.89 billion respectively signifying more than 100 percent performance rate and a growth of 30 percent.
In July, KRA collected Shs 152.85 billion against a target of Shs 152.54 billion reflecting a 100 percent rate while in August it collected Shs 138.91 Billion, a performance rate and growth of 103.6 percent
“The Authority further surpassed the September 2021 target of Shs 175.02 billion by Shs 9.89 Billion, after a collection of Shs 184.89 Billion, thereby registering a performance rate of 105.6 percent and a growth of 28.6 percent,” it said in a statement.
The taxman attributed the good revenue performance to an improved macro-economic environment, relaxation of Covid-19 containment measures, and sustained implementation of enhanced compliance efforts.
It added that the country’s Gross Domestic Product is expected to grow by 6.3 percent, slightly higher than the 6.1 percent economic growth projected by the Central Bank of Kenya (CBK).
Pay As You Earn recorded the highest growth at 104,2 percent due to what KRA attributed to gradual growth in employment countrywide with the total taxes collected standing at Shs. 107.79 Billion, against a target of Shs. 103.37Billion, a surplus of Shs 4.39 Billion.
Customs and border control collected Shs 173.24 billion against a target of Shs 161.84 billion, reflecting a revenue surplus of Shs 11.39 billion.
“KRA attributes customs and border Control performance to 31.8 percent growth in non-oil taxes and 15.0 percent growth in petroleum taxes. non-oil taxes registered a collection of Shs 112.438 Billion against a target of Shs 105.002 Billion with a surplus of Shs 7.436 Billion, while petroleum taxes amounted to Shs 60.803 Billion against a target of Shs 56.842 Billion posting a surplus of Shs 3.961 Billion,” the agency added.
Domestic Taxes performance, on the other hand, reported a 32.9 percent growth compared to a similar period last year.
The Domestic revenue collection stood at Shs 302.145 billion against a target of Shs 298.626 billion. This translates to a surplus of Shs 3.519 Billion and a performance rate of 101.2 percent.
The Value Added Tax (VAT) collections amounted to Shs 60.188 Billion against a target of Shs.59.173 billion, resulting to a surplus of Shs 1.015 Billion.
The agency has assured that it will enhance tax 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,” it added.