Why Kenya Revenue Authority fails to meet its tax targets

Kenya: One year later and another budget statement is in the offing.  In some ways, the position the Treasury Cabinet Secretary finds himself in is similar last year’s.  Revenue collections continue to struggle against set targets but have risen year-on-year.  The economy has not grown as much as we would have liked.

So, why are we unable to meet our targets?  It is clear that year on year; we do see increased collections - a tribute to improvement in the operations Kenya Revenue Authority (KRA). It does seem that the targets set annually, and next year will be no different or are unrealistic. They are derived from high government expenditure, which shows no sign of abating. Economic conditions, insecurity, lack of infrastructure and corruption certainly play a big role in not attaining revenue targets.