- President argued that increased revenue collections would address country’s debt situation
- In July, KRA for the first time in Kenya’s history hit and surpassed the Sh2trillion revenue collection mark.
Image: PCS
President William Ruto wants the Kenya Revenue Authority (KRA) to double its collections from Sh2.1 trillion to over Sh4 trillion.
Ruto explained that increasing revenue collection would aid the country in getting out of its debt situation.
“I need help with our debt situation. I have agreed with KRA that as a country, must move from Sh2.1 trillion to between Sh4-5 trillion,” he stated.
The President, while quoting Bible verses which states the borrower is a slave to the lender, said the country must increase it revenue collection to sort rising debt.
“You know the Book of Proverbs says a good man leaves behind inheritance for his children’s children,” he stated.
The President regretted that Kenya’s revenue collection accounts for 14 per cent of the country’s Gross Domestic Product (GDP) while in other middle income countries, the figure is as high as 25 per cent.
“Countries in the middle-income category raise 20-25 per cent of their GDP from. In Kenya, we are at 14 per cent,” he stated.
Ruto made the remarks on Sunday during a church service at Faith Evangelistic Ministry in Karen, Nairobi.
Present was Deputy President Rigathi Gachagua. They were accompanied by their spouses Rachael Ruto and Dorcas Rigathi.
Prime Cabinet Secretary Musalia Mudavadi was also present
In July, KRA for the first time in Kenya’s history hit and surpassed the Sh2 trillion revenue collection mark.
Revenue collection in the 2021/22 Financial Year, which ended on June 30, reached a new record of Sh2.031 trillion growth compared to Sh1.669 trillion collected in the previous year.
KRA is also mandated to collect revenue on behalf of other government agencies mainly at the ports of entry.
These include Road Maintenance Levy, Airport Revenue, Aviation Revenue, and Petroleum Development Fund amongst other levies.
During the financial year ending June 30, KRA collected Sh131.479 billion on behalf of the agencies, reflecting a growth of 5.1 per cent compared to the last financial year.
The money collected on behalf of the National Government grew by 23.0 per cent.
On Sunday, Ruto said he strongly believes that KRA is able to double the debt collection.
“I trust God will help us achieve it so that we can leave an inheritance for our children. As things stand now, we run the risk of leaving debt for our children,” he added.
Ruto further added that increased revenue collection would also assist his administration in addressing food and environmental challenges.