For the first time in Kenya’s history, the Kenya Revenue Authority has collected over Sh. 2 trillion revenue in twelve months.
This is after the KRA recorded a monumental revenue collection of Sh. 2.031 trillion for the Financial Year 2021-2022 (July 2021 – June 2022) compared to Sh. 1.669 trillion collected in the last financial year 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 Sh. 1.882 trillion and two other upward revenue target revisions of Sh. 1.911 trillion, which was later revised to Sh. 1.976 trillion.
This is the first time KRA has surpassed its original target in 14 years, 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 Sh. 148.9 billion against the original target, which is the highest surplus ever in KRA’s history,” said KRA.
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“This also enabled The Authority to record another milestone after revenue collection just about tripled in the last 11 years from Sh. 707.36 billion in the financial year 2011-12 to Sh. 2.031 trillion in 2021-22 financial year.” This performance represents a growth of 187.1 per cent in the last eleven years.
The revenue collection of Sh. 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.
“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,” said KRA.
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 Sh. 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 Sh. 1.899 trillion compared to Sh. 1.544 trillion collected in the previous financial year. This translates to a performance rate of 103.3 per cent against the target.