The Kenya Revenue Authority (KRA) has recorded a notable 11.1% revenue growth in the financial year 2023/2024, collecting Kshs. 2.407 trillion compared to Kshs. 2.166 trillion in the previous financial year.
Despite facing multiple economic shocks, including a depreciating currency, rising bank lending rates, and international conflicts disrupting supply chains, KRA’s revenue performance was boosted by a range of initiatives aimed at enhancing tax compliance and revenue collection.
Domestic Taxes recorded a revenue growth of 14.4%, with Customs Revenue registering a growth of 4.9%. The Exchequer revenue grew by 9.5%, with a performance rate of 95.8%.
Key tax heads performed well, with Domestic VAT recording a growth of 15.3% and Capital Gains Tax growing by 49.5%. Corporation Tax performed at 93.4%, while Pay As You Earn (P.A.Y.E) registered a growth of 9.7%.
KRA attributes its revenue growth to the implementation of key strategies, including technology enhancements, tax base expansion, and debt collection initiatives.
“We have continued to leverage technology to deliver market-customized solutions that simplify tax processes, facilitate trade, and enhance voluntary compliance,” said KRA Commissioner-General, Mr. [Name].
The authority also launched several customer support programs aimed at creating a customer-centric tax environment and improving revenue collection.
Going forward, KRA plans to design and deploy new technology architecture that will create market customized solutions and enable stakeholders to integrate with KRA systems.
“We will increasingly rely on data analytics, Artificial Intelligence (AI), Machine Learning (ML), and Application Programming Interface (API) to reshape how we approach compliance and improve customer experience,” said Mr. [Name].
The authority also plans to continue expanding its tax base, integrating with other systems for real-time collection of information and revenue, and enhancing debt collection initiatives.
In addition, KRA will continue to implement anti-corruption measures, including an anonymous whistle-blowing mechanism through which the public and staff can report tax malpractices.
Overall, KRA’s revenue performance is expected to contribute significantly to the country’s economic growth and development efforts.
