KRA sees improved tax collections to Ksh.121.8 billion in July
There was a rebound in tax revenue collection in the month of July by the Kenya Revenue Authority (KRA) when it registered Ksh.121.8 billion, a 29 percent improvement.
It is an improved collection since the onset of the new financial year compared to a Ksh.94.5 billion that was recorded same period last year.
New figures from the National Treasury released Friday indicated a gradual economic recovery after the country plunged into a crisis last year with massive layoffs and companies shutting down due to coronavirus pandemic.
Non-tax revenues in the first month of the 2021/22 fiscal year stood at Ksh.348.9 million compared to Ksh.1.4 billion last year.
The first seven months of this year have seen an improved tax collection when COVID- imposed restrictions began to be eased in January.
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The taxman has since raised its revenue target to Ksh.1.71 trillion for the financial year ending in June 2022 from Ksh.1.579 trillion for the previous financial year.
In the previous financial year, KRA missed its annual tax target by Ksh.16.8 billion to collect Ksh.1.56 trillion.
This was against a target of Ksh.1.579 trillion as per revised budget estimates covering the period to June 2020.
The collection represented a much improved 98.9 percent performance.
The improved collections for the month of July come on the back of a ravaging coronavirus pandemic that battered the country’s economy since its advent in March 2020.
However, Kenya’s road to economic recovery still hangs in the balance due to uncertainty around the COVID-19 virus, delays in vaccination programmes, increasing debt levels and rising inflationary pressures.
With the slow pace in the inoculation process, the emergence of variants, increasing debt levels and rising inflationary pressures, Treasury Cabinet Secretary Ukur Yatan expressed concerns that Kenya still has a long way to go.
Prospects for Kenya’s economic recovery will centre on the progress of the vaccination effort, macroeconomic stability and implementation of the projects under the “big four plan.”
Kenya’s key economic indicators like tourism is being projected at a near full recovery to the 2019 figures for the year 2024.