News Break
For the first time in Kenya’s history, the annual revenue collection has hit and surpassed the Two Trillion mark, defying the difficult economic environment brought about by Covid-19.
This is after Kenya Revenue Authority (KRA) recorded a monumental revenue collection of KShs. 2.031 Trillion for the Financial Year 2021/2022 (July 2021 – June 2022) compared to KShs. 1.669 Trillion collected in the last financial year (FY 2020/2021).
The Authority registered an above–target stellar revenue performance after exceeding the fiscal year target as stated in the Budget Policy Statement. KRA surpassed the original target of KShs. 1.882 Trillion and two other upward revenue target revisions of KShs. 1.911 Trillion, which was later revised to KShs. 1.976 Trillion. This is the first time The Authority has surpassed its original target in 14 years (since FY 2007/08), after the previous target revisions were adjusted downwards.
The positive revenue growth rate mirrors the improved tax compliance from patriotic taxpayers who contributed to the collection of revenue surplus of KShs. 148.9 Billion against the original target, which is the highest surplus ever in KRA’s history. This also enabled The Authority to record another milestone after revenue collection just about tripled in the last 11 years from KShs. 707.36 Billion in FY2011/12 to KShs. 2.031 Trillion in FY2021/22. The performance represents a growth of 187.1 per cent in the last eleven years.
The revenue collection of KShs. 2.031 Trillion signifies a performance rate of 102.8 per cent against the revised target and a revenue growth of 21.7 per cent compared to the last financial year. This is the highest revenue growth in history of Kenya Revenue Authority.
The outstanding performance consistent with the prevailing economic indicators, especially the projected GDP growth of 5.9 per cent in FY 2021/22 (Budget Policy Statement 2022) compared to a growth of 2.9 per cent in FY 2020/21. The performance is further anchored on the ongoing transformation at the Authority including the implementation of a high performance culture with stringent performance accountability as well as strict enforcement of tax laws in the fight against tax evasion.
KRA is 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 30th 2022, KRA collected KShs. 131.479 Billion on behalf of the agencies reflecting a growth of 5.1 per cent compared to the last financial year.
The exchequer, which is the money collected on behalf of the National Government, grew by 23.0 per cent. This is after KRA collected KShs. 1.899 Trillion compared to KShs. 1.544 Trillion collected in the previous financial year. This translates to a performance rate of 103.3 per cent against the target.
