- According to KRA, it is expected that exchequer revenue will rise from Sh1.76trillion in 2021/22 to Sh2.5 trillion in 2023/24.
- To increase revenue collection and achieve the set target, the taxman will expand the tax base by tapping into new taxable income sources.
Kenya Revenue Authority (KRA) is estimated to collect Sh 6.8 trillion over the period 2021/22 to 2023/2024 financial years.
According to KRA, through its 8th Corporate Plan, it is expected that exchequer revenue will rise from Sh1.76trillion in 2021/22 to Sh2.5 trillion in 2023/24.
Through the target revenue collection, the Authority is expected to sustain an annual average growth of 16.9 per cent over the period in which nominal GDP growth is also projected to grow at 11.2 per cent.
To increase revenue collection and achieve the set target, the taxman will expand the tax base by tapping into new taxable income sources.
Key focus as highlighted in the Corporate Plan will be on sectors with potential for revenue growth, such as real estate, businesses in the Turnover Tax regime, registered companies, agriculture sector, employment sector, High Net-Worth Individuals and the digital economy.
"The Authority aims at increasing the number of active taxpayers by an additional 2 million," said KRA Deputy Commissioner Marketing & Communication.
Through its Customs & Border Control Department (C&BC), KRA will also focus on enabling trade across borders through facilitation of legitimate trade by effectively monitoring both land and sea borders and strengthening of the Authority’s Marine Unit.
It will also improve pre-arrival cargo clearance using its Integrated Customs Management System (iCMS).
Speaking during the launch of the 8th Corporate Plan, KRA Commissioner General Githii Mburu said that the Authority is up to the task amidst various challenges that range from an upcoming general election in 2022, post-Covid-19 recovery measures and a growing informal sector that is hard to tax.
CS Treasury Ukur Yatani lauded KRA for its achievements during the 7 th Corporate Plan (2018/2019 -2020/2021) period.
Key achievements he said include the growth of the active taxpayer base by 55 per cent, from 3.94 million in 2018/19 to 6.1 million.
Revenue collected during the plan period was Sh4.849 trillion, a 21 per cent growth compared to the 6th Corporate Plan period in which total Sh4.000.8 trillion was collected.
KRA registered an improved performance despite the outbreak of the Covid-19 pandemic that cropped up in early 2020 leading to the emergence of new business models, increased use of the digital platforms for transactions and growth in the hard-to-tax sectors, such as the informal sector.