The Kenya Revenue Authority (KRA) missed its revenue targets by over Ksh 380 in the Financial Year 2023/2024.
In a statement, KRA announced it collected Ksh2.407 trillion against a target of Ksh2.787 trillion.
The amount however grew by a notable 11.1% up from 6.4% in the previous financial year, after KRA collected Kshs. 2.407 Trillion compared to Kshs. 2.166 Trillion in the previous financial year.
“The year under review was characterized by multiple economic shocks that included the depreciation of the Kenya Shilling against the US Dollar, rising bank lending rates, and international conflicts that disrupted supply chains, among others. These factors affected revenue mobilization efforts,” KRA stated.
Exchequer revenue grew by 9.5% after collection of Kshs. 2.223 Trillion, with a performance rate of 95.8%. Agency revenues amounted to Kshs. 184.036 Billion, reflecting a growth of 34.9%.
Domestic taxes grew by 14.4 percent to hit Ksh1.611 trillion against a target of Ksh1.677 trillion, a performance rate of 96.1 percent.
Customs Revenue recorded a performance rate of 94.6% with a collection of Kshs. 791.368 Billion. This translates to a revenue growth of 4.9%, compared to the same period in FY 2022/2023.
Domestic VAT collection stood at Ksh314.157 billion against a target of Ksh307.823 billion, a 15.3 percent growth. This is largely due to the implementation of the Electronic Tax Invoice Management System (eTIMS).
“Domestic VAT average monthly collection stood at Ksh23.559 billion the first half of FY 2022/23, before increasing to a monthly average of Ksh26.250 billion in the second half of FY 2022/23 when eTIMS rollout was scaled up. Currently, monthly average domestic VAT collections stand at Ksh28.680 billion in FY 2023/24,” KRA stated.
Domestic Excise, on the other hand, grew by 8.1 percent to Ksh73.624 billion while Capital Gains Tax registered a 49.5 percent growth to hit Ksh8.381 billion against a target of Ksh7.710 billion, a performance rate of 108.7 percent.
Also Read: KRA Reveals Number Of Kenyans Who Have Filed Annual Tax Returns Ahead Of Deadline
