- KRA started the new financial year on an upward trajectory, after surpassing its July 2021 target
- Pay As You Earn (PAYE) registered a performance rate of 104.2%
- Expects the Gross Domestic Product to grow by 6.3% in FY 2021/22
The Kenya Revenue Authority (KRA) said it had collected KSh 476.646 billion, surpassing the Financial Year 2021-2022, Quarter One (July – September 2021) revenue target of KSh 461.653 billion by KSh 14.992 billion.
In a statement, the Authority said the performance reflected a sustained revenue growth in the first three months of the year, with a performance rate of 103.2% and growth of 30%.
Despite the slow economic growth, KRA said it commenced the new financial year on an upward trajectory, after surpassing its July 2021 revenue target with a surplus of KSh 311 million, after a revenue collection of KSh 152.854 billion against a set target of KSh 152.543 billion, reflecting a performance rate of 100.2%.
KRA maintained the upward trend in August 2021, collecting KSh 138.906 billion, a performance rate and growth of 103.6% and 29.5% respectively, above the set target and recording a surplus of KSh 4.816 billion.
The Authority further surpassed the September 2021 target of KSh 175.02 billion by KSh 9.886 billion, after a collection of KSh 184.886 billion, thereby registering a performance rate of 105.6% and a growth of 28.6%.
“The good revenue performance is a reflection of improving macro-economic environment, relaxation of Covid-19 containment measures, and sustained implementation of enhanced compliance efforts by the Authority,” the Authority said.
KRA said it expects the Gross Domestic Product to grow by 6.3% in FY 2021/22 as per 2021 Budget Policy Statement, compared to a contraction of 0.3% in 2020.
Safaricom posts 23.9bn half year profit
First Quarter
During the first quarter of the Financial Year, Customs & Border Control (C&BC) collected KSh 173.241 billion against a target of KSh 161.844 billion, reflecting a revenue surplus of KSh 11.397 billion.
The Customs & Border Control recorded a growth of 25.4% in the period under review. KRA attributes Customs & Border Control performance to 31.8% growth in non-oil taxes and 15% growth in petroleum taxes.
Non-oil taxes registered a collection of KSh 112.438 billion against a target of KSh 105.002 billion with a surplus of KSh 7.436 billion, while petroleum taxes amounted to KSh 60.803 billion against a target of KSh 56.842 billion posting a surplus of KSh. 3.961 billion.
Domestic Taxes performance also improved, with a 32.9% growth compared to a similar period last year. The Domestic revenue collection stood at KSh 302.145 billion against a target of KSh 298.626 billion, translating to a surplus of KSh 3.519 billion and a performance rate of 101.2%.
Pay As You Earn (PAYE) registered a performance rate of 104.2% in the first quarter after a collection of KSh 107.787 billion, against a target of KSh 103.369 billion resulting to a surplus of KSh 4.391 billion.
“The performance was mainly driven by gradual growth in employment which is a clear sign of economic recovery,” the Authority said.
The Value Added Tax (VAT) collections amounted to KSh 60.188 billion against a target of KSh 59.173 billion, resulting to a surplus of KSh 1.015 billion and recording a growth of 44.5%, attributable to enhanced compliance efforts by the Authority and economic recovery.
Corporation tax collection stood at KSh 54.330 billion, which is a growth of 21.9% over the first quarter compared to 3.7% achieved in the past financial year (FY 2020/21).
The Authority said the performance was driven by increased remittance from Energy, Agriculture, Manufacturing and Transport sectors that grew by 122%, 103.9%, 83.7% and 107.4% respectively.
Withholding Tax totalled KSh 36.053 billion, representing a growth of 11.9% over the first quarter of 2020/21, which was an increase from a growth of 3.8% achieved in the last financial year. This further signals economic recovery from the adverse impact of Covid-19 pandemic.
Domestic Excise amounted to KSh 15.392 billion, and a growth of 20.7%, over the first quarter last year, compared to a growth of 12% recorded in the last financial year.
The Authority said the performance turnaround is attributed to reopening of the economy and enhanced compliance efforts by the Authority. The country is on an economic recovery path with the economy projected to grow by 6.3% in FY 2021/22, hence a positive impact on revenue performance.