KRA maintains revenue growth while April collection jumps 23.9% – KBC


The Kenya Revenue Authority (KRA) registered a 23.9% increase in revenue in April compared to the same period last year while monthly collections continue to increase for the fifth consecutive month.

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Commissioner General Githii Mburu says revenue increased to Kshs. 176.7 billion during the audited month compared to Kshs. 144.1 billion was collected last year.

The authorities were aiming to collect Kshs. 170.2 billion during the month representing a revenue performance of 103.8%.

“Good revenue performance has been enhanced by the continuous implementation of compliance efforts, revenue-raising initiatives and improved service delivery to taxpayers, which has resulted in improved compliance,” said Mburu.

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He added, “In addition, good performance is also contributed by enhanced monitoring and implementation, which is aided by KRA’s investment in technology. This includes integrated scanners, which have improved compliance rates at border points by plugging revenue leakage sections.”

KRA recorded an improved collection in all revenue streams where Customs and Border Control levy a tax of Kshs. 54 billion against the target of Kshs. 48.2 billion representing a performance rate of 112.1%.

“Customs and Border Control performance is associated with an increase in the number of goods from Kenya. This is a sign of continued economic growth in the Industrial and Construction Sectors, ”Mburu added.

Collection from Domestic Taxes also increased to Kshs. 122.2 billion in April against the target of Kshs. 121.6 billion supported by corporate Tax Reforms which received KRA Kshs. 39.9 billion against the target of Kshs. 34.2 billion.

Pay-As-You-Earn (PAYE) recorded a 5.3% growth equivalent to KShs 37 billion in revenue.

On the other hand, the withholding Income Tax exceeded the target of April 2021 by KShs 1.5 billion after registering a collection of Kshs 12.1 billion showing a growth of 21.4%.

The KRA says Domestic Tariffs also hit the April target with a growth of 25.7%.

The Domestic Tariff collection amounted to Kshs 4.97 billion exceeding the target by Kshs 311 million.

According to the Commissioner General, measures such as the expansion of the tax base, the improvement of the debt recovery plan, the implementation of post-inspection clearance inspections, a thorough inspection of all exemptions, enhanced scanning and intelligence verification and internally and to reach out to taxpayers with tax disputes to agree on Alternative Dispute Resolution (ADR) for immediate resolution are expected to see more effective collection continue.

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