survey
Regulator wants joint oversight on telecoms sector Next Story
Ex-NBK bosses’ bid to lift ban fails Previous Story
You are here  » Home   » Business News

Revenue from Government activities fell 20pc last year

By Dominic Omondi | Published Thu, August 9th 2018 at 00:00, Updated August 8th 2018 at 20:12 GMT +3

An administration police officer keep guard as Wiper Party members wait for their turn to vote for their aspirants at Ziwa la Ng'ombe Primary School in Mombasa County where names of many members were missing, April 18, 2017. [PHOTO BY GIDEON MAUNDU/STANDARD.

State agencies made lesser cash in fees, fines and sales in the financial year ended June 2017. This was a result of a protracted electioneering period that left investors on the edge.

ALSO READ: Cane farmers against closing of sugar miller

Money collected by ministries, departments and agencies (MDAs) in fees, fines and sale of items declined by 20 per cent to Sh24.9 billion in the 2016/2017 financial year from Sh31.4 billion, according to the Government’s projections of revenue, grants and loans for the year ending June 2019.

The money includes legal fees charged by courts and others for provision of passports, work permits, driving licences, marriage certificates and mining royalties. 

MDAs made most of their money from sale of inventories, stocks and commodities, receiving Sh17.2 billion in the financial year. This was a decline from Sh18.9 billion they received in the previous financial year. 

The drop was, however, compensated by increased earnings from taxes on goods and services, which increased to Sh737.1 million during the period under review from Sh673.9 million in the previous year.

Grants from international partners also increased from Sh43.1 billion in 2015/2016 to Sh59.3 billion in the period under review. 

Avoid becoming a victim of Fake News. Subscribe to the Standard Group SMS service by texting 'NEWS' to 22840.

However, politicians and traders dug deeper into their pocket to protect themselves during the General Election.

Fees from hire of security services more than doubled to Sh653.7 million in the financial period that ended June 2017, up from Sh321.1 million in the previous financial year. 

The increased need for security might also have come from traders who took precautions against the heightened political activities that included violent protests and demonstrations. 

ALSO READ: Revenue crisis as tax snub deepens

And with a lot of Kenyans keen to exercise their constitutional right to vote, the Ministry of Interior also made more money from issuance of national identity cards. 

Identity card fees went up to Sh44.15 million in the 2016/2017 financial year from Sh24.54 million in 2015/2016.

But it was generally a tough period for most State agencies, with the economy experiencing a slowdown. Kenya’s economy grew by 4.9 per cent in 2017, its worst performance since President Uhuru Kenyatta came to power in 2013.

The Government lost Sh1 billion in work permit fees, as expatriates kept away fearing poll violence.

Foreigners stayed away

Revenue declined from Sh5.2 billion in 2015/2016 to Sh4 billion, as foreigners working in various multinationals stayed away.

Immigration fees and other consular charges also declined from Sh484 million to Sh276 million.

ALSO READ: Counties 'broke' after failing to get Ifmis clearance

The elections were generally toxic, with most investors assuming a wait-and-see attitude in the protracted electioneering period. 

A slowdown in the economy saw the Government issue fewer driving licences, receiving Sh1.38 billion compared to Sh1.54 billion the previous year.

Cement levy, which is charged on finished cement products, also declined from Sh740.6 million to Sh503.4 million. 

 


Would you like to get published on Standard Media websites? You can now email us breaking news, story ideas, human interest articles or interesting videos on: [email protected]

RECOMMENDED