REVENUE

KRA collects Sh688.1bn in five months to November - Treasury

Last year, the tax agency defied Covid-19 challenges to beat its revenue target after an eight-year struggle

In Summary
  • The tax agency has had a good collection run this year, surpassing collections month on month since June. 
  • The country is battling high indebtedness, public debt had hit close to Sh8 trillion, almost 70 per cent of net GDP. 
KRA commissioner general James Mburu.
GOLD SMUGGLING: KRA commissioner general James Mburu.
Image: COURTESY

Kenya Revenue Authority has collected Sh688.1 billion in five months to November against this year's collection target of Sh1.7o7 trillion.

The Statement of Actual Revenues and Net Exchequer Issues as at November 30 published in the weekly Kenya Gazette, however, does not give a breakdown on tax streams. 

The tax agency has had a good collection run this year, surpassing collections month on month since June. 

In October, the revenue authority collected Sh154.38 billion against a target of Sh142.285 billion.

KRA Commissioner General Githii Mburu said the authority commenced the new financial year on an upward trajectory after surpassing its July-September target of Sh461.65 billion by Sh15 billion, recording a 30 per cent growth. 

Quick mathematics shows that having a total collection of Sh461.65 billion by September and a further Sh154.38 billion in October, the revenue man collected only Sh52.07 billion in November, the least in this year's series. 

KRA, therefore, needs to collect an average of at least Sh146 billion for the remaining seven months to June 30, 2021, in order to hit its target this financial year. 

Last year, the tax agency defied Covid-19 challenges to beat its revenue target after an eight-year struggle. It had fallen short of its obligation since 20313/2014.  

The 2020/2021 revenue target as reflected in the 2021 Budget Policy Statement was Sh1.652 trillion, which KRA surpassed with a surplus of Sh16.81 billion. 

Official data shows KRA collected Sh1.669 trillion compared to Sh1.607 trillion collected in the financial year 2019/20. This is both tax and non-tax revenue. 

The data further shows the National Treasury has so far galvanised a total of Sh1.16 trillion in revenue for the financial year against a demand of Sh3.19 trillion. 

The total collection comprises an opening budget of Sh21.3 billion, tax revenue of Sh688.1 billion and non-tax revenue of Sh30.7 billion.

Other are domestic borrowing of Sh430.1 billion, external loans of Sh11.82 billion and Sh4.15 in other domestic financings. 

The country has spent a huge chunk of the total revenue to pay salaries and other recurrent expenditures. The recurrent exchequer issues hit Sh432.6 billion in five months to November compared to the annual target of Sh1.1 trillion. 

On the contrary, the government has spent very on development, having utilised a paltry Sh123.79 billion against the allocated amount of Sh389.2 billion. 

It has so far sent Sh108.45 billion to counties against an allocation of Sh370 billion. It now needs to disburse at least Sh37.3 billion every month to June next year to fully meet the obligation. 

The exchequer is also on course with debt repayment even as it piles more. It had paid Sh417. 82 billion by the end of last month against its total debt obligation of Sh1.1 trillion. 

The country is battling high indebtedness, public debt had hit close to Sh8 trillion, almost 70 per cent of net GDP.