The Kenya Revenue Authority (KRA) collected Sh2.031 trillion in revenue for the Fiscal Year 2021/22, a 21.7 percent increase and the highest in the organization’s history.
In addition, it is the first time in fourteen years that the authority has exceeded its original revenue collection target, according to Commissioner-General James Mburu in a statement issued Thursday.
“KRA recorded a monumental revenue collection of Sh2.031 trillion for the Financial Year 2021/2022 (July 2021- June 2022) compared to Sh1.669trn collected in the last financial year 2020/2021,” said Mburu.
The KRA boss attributed the revenue increase to improved tax compliance from taxpayers, which contributed to a revenue surplus of Sh148.9 billion over the original target.
“The Authority registered an above-target stellar revenue performance after exceeding the fiscal year target as stated in the Budget Policy Statement. KRA surpassed the original target of Sh1.882 trillion and two other upward revenue target revisions of Sh1.911 trillion, which was later revised to Sh1.976 trillion.”
This is also the first time in 14 years that the Authority has exceeded its original target since FY 2007/08, after previous target revisions were adjusted downwards.
The 21.7 percent revenue growth is also the highest in KRA history.
Domestic taxes and customs collected Sh1.297 trillion versus a target of Sh1.267 trillion. This equates to a 102.4 percent performance rate and a Sh30 billion surplus collection.
Corporation tax collection stood at Sh242 billion, exceeding the target of Sh218 billion.
This corresponds to a 32.7 percent increase over the previous fiscal year. “This performance was driven by increased remittances from key sectors such as finance and insurance, manufacturing, wholesale and retail trade, transportation, and storage,” Mburu explained.
Pay as You Earn (P.A.YE) collected Sh461.81 billion against a target of Sh455 billion.
According to KRA, the performance was primarily influenced by the gradual recovery of the labor market as a result of economic recovery.
By the end of the Financal Year 2023/2024, KRA hopes to have collected Sh6.831 trillion in revenue.
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