KRA misses its annual revenue target by over Sh 100 billion despite RUTO’s aggressive tax measures – LOOK!

 Friday, July 14, 2023 – The Kenya Revenue Authority (KRA) has missed its annual target by Sh 107 billion.

The taxman collected Sh2.166 trillion, a 95.3 percent performance rate, the first time in two consecutive financial years the agency missed the target.

The target was 2.273 trillion. The tax receipts, however, recorded a 6.6 percent growth compared to the 2021/2022 fiscal year, when revenue collection stood at Sh2.031 trillion.

“The revenue performance reflects the prevailing economic indicators, especially the projected GDP growth of 5.8 percent in FY 2022/23 (Budget Policy Statement 2023) compared to a growth of 6.5 percent in FY 2021/22”, the acting Commissioner General, Rispah Simiyu, says in a statement Thursday.

The taxman said collections from the excise tax on betting stood at Sh6.65 billion against a target of Sh5.72 billion, representing a 116.2 percent performance rate of 116.2 percent or a surplus of Sh925 million.

“The performance is attributed to the integration of the betting companies into the KRA tax system.

The integration has streamlined tax remittance from the sector and scaled up revenue collection,” Ms Simiyu says.

The agency linked its systems with those of betting companies in October last year, allowing enhanced visibility of revenue generated by the firms as well as real-time tax collection.