The Kenya Revenue Authority (KRA) has collected Sh476.6 billion, surpassing the Financial Year 2021-2022, Quarter One (July – September 2021) revenue target of Sh461.6 billion by Sh14.9 billion.
KRA Commissioner General, Githii Mburu said the performance reflects a sustained revenue growth in the first three months of the year, with a performance rate of 103.2 per cent and growth of 30 per cent.
Mburu said that despite the slow economic growth, KRA commenced the new financial year on an upward trajectory, after surpassing its July 2021 revenue target with a surplus of Sh311 million, after a revenue collection of Sh152.854 billion against a set target of Sh152.543 billion, reflecting a performance rate of 100.2 per cent.
“KRA maintained the upward trend in August 2021, collecting Sh138.906 billion, a performance rate and growth of 103.6 per cent and 29.5 per cent respectively, above the set target and recording a surplus of KShs.4.8 billion. The Authority further surpassed the September 2021 target of Sh175.02 billion by Sh9.8 billion, after a collection of Sh184.8 billion, thereby registering a performance rate of 105.6 per cent and a growth of 28.6 per cent,” said Mburu.
He said that the good revenue performance is a reflection of improving macro-economic environment, relaxation of Covid-19 containment measures and sustained implementation of enhanced compliance efforts by the Authority.
“The Gross Domestic Product is expected to grow by 6.3 percent in FY 2021/22 as per 2021 Budget Policy Statement, compared to a contraction of 0.3 per cent in 2020,” said Mburu.
The Commissioner General said that during the first quarter of the Financial Year, Customs and Border Control (C&BC) sustained its excellent performance after collecting Sh173.2 billion against a target of Sh161.8 billion, reflecting a revenue surplus of Sh11.397 billion. The Customs and Border Control recorded a growth of 25.4 per cent in the period under review.
KRA attributes Customs and Border Control performance to 31.8 per cent growth in non-oil taxes and 15.0 per cent growth in petroleum taxes.
Non-oil taxes registered a collection of Sh112.4 billion against a target of Sh105 Billion with a surplus of Sh7.4 billion, while petroleum taxes amounted to Sh60.8 billion against a target of Sh56.8 billion posting a surplus of Sh3.9 billion.
“Domestic Taxes performance improved, with a 32.9 percent growth compared to a similar period last year. The Domestic revenue collection stood at Sh302.1 billion against a target of Sh298.6 billion. This translates to a surplus of Sh3.5 billion and a performance rate of 101.2 per cent,” said Mburu.
He explained that Pay As You Earn (PAYE) registered a performance rate of 104.2 per cent in the first quarter after a collection of Sh107.7 billion, against a target of Sh103.3 Billion resulting to a surplus of Sh4.391 Billion. The performance was mainly driven by gradual growth in employment which is a clear sign of economic recovery.
“The Value Added Tax (VAT) collections amounted to Sh60.1 billion against a target of Sh59.1 billion, resulting to a surplus of Sh1.015 billion and recording a growth of 44.5 per cent. The good performance was primarily attributable to enhanced compliance efforts by the Authority and economic recovery,” said Mburu.
He highlighted that Corporation tax collection stood at Sh54.3 billion, which is a growth of 21.9 per cent over the first quarter compared to 3.7 per cent achieved in the past financial year (FY 2020/21). This performance was driven by increased remittance from Energy, Agriculture, Manufacturing and Transport sectors that grew by 122.0 per cent, 103.9 per cent, 83.7 per cent and 107.4 per cent respectively.
“Withholding Tax totalled Sh36.053 billion, representing a growth of 11.9 per cent over the first quarter of 2020/21, which was an increase from a growth of 3.8 per cent achieved in the last financial year. This further signal economic recovery from the adverse impact of Covid-19 pandemic,” said Mburu.
Mburu said that Domestic Excise amounted to Sh15.392 billion, and a growth of 20.7 per cent, over the first quarter last year, compared to a growth of 12.0 per cent recorded in the last financial year. The performance turnaround is attributed to reopening of the economy and enhanced compliance efforts by the Authority. The country is on an economic recovery path with the economy projected to grow by 6.3 percent in FY 2021/22, hence a positive impact on revenue performance.
“KRA continues to drive compliance through investment in modern technology to enhance efficiency in tax mobilisation, with enhanced operational efficiency as embedded in the KRA 8th Corporate Plan. The Authority is optimistic that this investment shall continue to sustain the good performance in revenue mobilisation,” said Mburu.
“We also continue to focus on trade facilitation and enhanced 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,” he said.
Mburu said that KRA appreciates compliant taxpayers for being resilient and honouring their tax obligations. It is through the commitment and dedication of the taxpayers that KRA manages to collect over 93 per cent of the exchequer revenue every year to fund our country’s development agenda.
In the spirit of celebrating our esteemed taxpayers, KRA has dedicated the month of October to carry out activities that honour and appreciate our taxpayers.
This year’s Taxpayers Month is anchored on the theme ‘Pamoja Twaweza’ that highlights the collective role and contribution of both taxpayers and KRA towards the country’s economic sustainability.
“KRA is committed to enhancing the taxpaying experience and encourages taxpayers to meet their tax obligations through filing and paying their fair share of taxes,” said Mburu.
By Joseph Ng’ang’a