KRA revenue jumps 9.6 per cent

Kenya Revenue Authority (KRA) recorded an overall revenue for the first half (H1) of FY 2017/18 grew by Sh 62.5 billion to Sh 712.2 billion from Sh 649.7 billion recorded in the previous year, while Exchequer Revenue grew more strongly by 10% to reach Sh 664.77 billion up from Sh 604.27 billion in FY 2016/17.

This growth compares well with the 3-year (2014/15 to 2016/17) average Exchequer Revenue growth of 10.5%. The overall growth, representing 9.6 % rise was recorded against the backdrop of a depressed economic climate occasioned by the prolonged election cycle that stretched for the better part of calendar year 2017.

The prolongation according to knowledgeable business sources adversely affected business confidence and depressed consumer spending, leading to weak performance in consumption related taxes especially in the nonessential goods sectors including beverages. Moreover, delayed normalisation of the Government’s fiscal programme adversely impacted both public and private sector tax remittances, the latter due to delayed settlement of bills. Overall, economic growth for the period slowed to an estimated 4.4% against the 6.0% used in Budget Policy Statement (BPS) projections.

For the second half (H2), focus has shifted to leveraging the improved business environment following the conclusion of elections, a development expected to lead to a normalised Government fiscal programme and improved business climate. For H2, the target is to raise Sh 798.84 billion, as part of the drive to generate resources to fund the ambitious Big 4 Agenda announced by His Excellency President Uhuru Kenyatta, CGH on Jamhuri Day, 2017.