KRA nets Sh628 billion in half-year collections

The Kenya Revenue Authority (KRA) has collected over Sh628 billion for the first half of the 2019/2020 financial year.

The revenue haul represents 36 per cent of the Sh1.7 trillion target set for the year, indicating the taxman could miss Treasury’s collection targets.

According to the latest statement of revenues and expenditure released by the National Treasury, a total of Sh1 trillion out of the Sh2.6 trillion spending plan for the current financial year has been disbursed for the current financial year.

Of this, Sh389 billion has been released to various ministries and state departments - representing 40 per cent of the Sh1 trillion allocations for the current financial year.

SEE ALSO :This Treasury clerk made Sh600m in six years

The total development funds released in the first five months amounted to Sh90 billion, of the Sh477 billion approved disbursements.

The revenue performance is likely to pile pressure on the taxman who has in the past year stepped up efforts to collect more revenue through prosecuting evaders.

Collection targets

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Last year, KRA missed revenue collection targets by Sh100 billion, prompting Treasury to propose additional tax measures in the 2019/2020 Finance Bill.

These included a push to implement the protracted Excise Goods Management System (EGMS) on bottled water, juices, energy drinks, soda and other non-alcoholic beverages that came in effect last month.

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KRA has over the years tried to introduce the tax, which could raise over Sh3.6 billion in additional revenues and help fight counterfeits, without success.

Other tax measures introduced include income tax and value-added tax on goods sold online. Treasury has released Sh83 billion to counties, representing 26 per cent of the Sh316 billion. 

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Kenya Revenue AuthorityKRA2019/2020 financial year