KRA Surpasses Sh2 Trillion Mark in Revenue Collection for the First Time in Kenya's History

The Kenya Revenue Authority (KRA) has hit and surpassed the Sh2 trillion mark in revenue collection for the first time in the country’s history.

On Thursday, the tax authority announced that it raised Sh2.031 trillion in the 2021/2022 financial year, exceeding its revenue collection target by Sh148.9 billion, thanks to increased collections in corporate, payroll, and value-added taxes

KRA had initially set a target of Sh1.882 trillion, before revising it upwards twice during the year to Sh1.91 trillion and Sh1.98 trillion. The revenue collection for the previous year stood at Sh1.669 trillion.

“The outstanding performance consistent with the prevailing economic indicators, especially the projected GDP growth of 5.9 percent in 2021/22 fiscal year compared to a growth of 2.9 percent in 2020/21,” said the KRA.

“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.”

KRA indicated that corporation tax collection grew by 32.7 percent to Sh242 billion against a target of Sh218.2 billion. The agency also netted Sh461.8 billion from Pay as You Earn (PAYE) or payroll taxes against a target of Sh455.1 billion, while domestic VAT collections rose by 24 percent to Sh244.7 billion.

Through to Twitter on Thursday, KRA Commissioner General Githii Mburu attributed the positive revenue growth to improved tax compliance.

“The positive revenue growth rate mirrors the improved tax compliance from patriotic taxpayers who contributed to the collection of revenue,” he said.

He pointed out that domestic taxes earned the agency Sh1.297 trillion against a target of Sh1.267 trillion while Customs and Border Control collected Sh728.530 billion against the set target of Sh702.823 Billion. 

“The revenue collection of Ksh.2.031 Trillion denotes a stellar performance rate. This is the highest revenue growth in the history of Kenya Revenue Authority,” he said.