Kenya Revenue Authority (KRA) has maintained an upward trajectory in revenue collection, after recording a 6.7% growth in the financial year 2022/2023.

Despite an economic slowdown occasioned by an unfavourable global fiscal environment, KRA recorded a revenue collection of KShs 2.166 Trillion for the period July 2022 – June 2023 compared to KShs. 2.031 Trillion in the last fnancial year. 

The revenue performance which was affected by the slowed domestic economic growth in 2022 which went down to 4.8 percent from 7.6 percent in 2021. 

The decelerated domestic economic growth was due to adverse impact of multiple shocks that affected the economy, including aprolonged drought, international conflicts that disrupted the supply chain amongothers.

The revenue collection signifies a strong performance rate of 95.3 per centagainst the target. This is the second year in a row that KRA has surpassed the two trillion mark.

Exchequer revenue which constitutes of all the mainstream Government revenues like; Taxes on International Trade and Transactions, Excise taxes, Taxes on Income, Profits and Capital gains, Taxes on goods and services, and Property taxes recorded a 6.9 per cent increase after KRA collected Kshs 2.030 trillion compared to Kshs 1.900 trillion in the previous financial year.

Excise on betting registered a stellar performance rate of 116.2% after collecting Ksh.6.640 billion against a target of Ksh.5.715 billion. 

Domestic VAT collection stood at Ksh.272.452 billion reflecting a growth of 11.3 per cent compared to the previous year.

Corporation tax performed at 94.2% with a collection of Ksh.263.819 billion. This is a growth of 9.0 per cent over the last financial year. 

The tax head recorded a growth of 2.8% in FY 2022/23, with a collection of Ksh.68.124 Billion, which translates to a performance rate of 91.4%. 

On tax base expansion, KRA has collected an additional Ksh.14.64 billion recruiting 940,483 additional active taxpayers in the period under review.

KRA targets to collect KShs 2.768 Trillion by the end of Financial Year2023/2024 and surpass the KShs 3 Trillion mark by Financial Year 2024/2025.

KRA is confident that it will achieve this target and enable the government finance its Bottom-Up Economic Transformation Agenda (BETA) and sustain the country’s economy.

In order to achieve this, KRA is implementing both tax administrative measures and tax policy reforms. KRA will implement the National Tax Policy and theMedium-Term Revenue Strategy (MTRS) for the period FY 2023/24 - 2026/27. 

KRA also commended taxpayers for battling the challenging economic environment and exhibiting resilience and voluntarily payment of their taxes to support the country’s economic transformation.