KRA Historically Collects More Than Ksh2 Trillion In Tax

The Kenya Revenue Authority (KRA) has announced that it has collected the highest amount of tax in Kenya's history.

KRA, led by Commissioner General Githii Mburu, noted in a statement on Thursday, July 7 that the authority had surpassed the Ksh2 trillion mark in terms of revenue collection- the highest since it was founded.

Ksh2.031 trillion was collected for the 2021/2022 Financial Year concluded on Thursday, June 30, compared to Ksh1.669 trillion collected last year.

KRA Commissioner General Githii Mburu. /THE STAR

"The positive revenue growth rate mirrors the improved tax compliance from patriotic taxpayers who contributed to the collection of revenue surplus of Ksh148.9 billion against the original target, which is the highest surplus ever in KRA’s history.

"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 Ksh1.882 trillion and two other upward revenue target revisions of Ksh1.911 trillion, which was later revised to Kshs1.976 trillion. This is the first time it has surpassed its original target in 14 years (since FY 2007/08)," noted the statement in part.

The taxman added that it had collected Ksh1.297 trillion in domestic tax, which is above the target of Ksh1.267 trillion. This is an increase of 102.4 per cent, translating to a rise of Ksh30.44 billion.

It also collected Ksh728.53 billion in Customs and Border control taxes, more than its target of Ksh702.8 billion, an increase of 103.6 per cent, translating to Ksh25.7 billion.

The exchequer collected Ksh1.899 trillion, an increase of 23 per cent, while Ksh131.479 billion was collected in agency fees, which is a growth rate of 5.1 per cent.

PAYE (Pay As You Earn) taxes posted a growth of 27 per cent, collecting Ksh461.815 billion against a target of Ksh455.129 billion. Corporation Taxes recorded a performance growth of 32.7 per cent, collecting Ksh242.018 billion against a target of Ksh218.161 billion. 

In terms of Petroleum Taxes, KRA collected Ksh247.990 billion reflecting a performance rate of 96.8 per cent. Non-oil Taxes registered a growth of 20.7 per cent, collecting Ksh480.540 billion against a target of Ksh446.516 billion.

"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," the statement explained with regards to consistent performance coupled with economic indicators which projected a 5.9 per cent growth in the Gross Domestic Product (GDP).

Among the key drivers of revenue listed include Revenue Enhancement Initiatives such as Alternative Dispute Resolution (ADR), Voluntary Tax Disclosure Program (VTDP), exchange of information with global tax revenue agencies, enhanced active border surveillance and enforcement as well as collaboration with multi-agency teams in the fight against tax evasion. 

Also listed include strengthening of integrity measures and service delivery which includes heightened awareness among staff on the Internal Code of Conduct, use of anonymous reporting tools to combat corruption such as iWhistle and a robust Internal Performance Management programme.

The enhanced use of Innovative Technology such as improved user experience for the iTax system and extensive use of data and intelligence tools to unearth unpaid taxes were also named as key revenue drivers.

Kenyans lining up to file taxes. /MONEY254