KRA Misses Fuel Revenue Target As Kenyans Leave Cars At Home

The government has lost billions of shillings in fuel revenue as a result of record-high prices, which are causing Kenyan motorists to leave their cars at home, according to the taxman.

According to the Kenya Revenue Authority (KRA), gasoline revenues increased by 84.8 per cent between July and September of this year.

According to the revenue agency, this resulted in a Sh12.9 billion deficit compared to the KRA’s target.

KRA Commissioner General Humphrey Wattanga provided data to the National Assembly Finance Committee, stressing that the fall in collections represented an 8.6 per cent drop compared to the prior period of July to September last year.

“Oil revenue recorded a performance rate of 84.8 per cent in July-September 2023 for a deficit of Sh12.9 billion against target, and a decline of 8.6 per cent over July-September 2022 collections,” said Mr Wattanga.

“The tax category’s performance was affected by a decline in overall oil volumes by 12.4 per cent, attributed to a drop in fuel consumption in January-June 2023 driven by high pump prices that depressed demand,” said KRA.

Kenyans have reduced their consumption of several petroleum products over the previous year or two, with current high prices projected to exacerbate the situation.

The KRA’s admission coincides with record-breaking fuel costs, which have already harmed the living standards of millions of Kenyans.

The exorbitant cost of gasoline is forcing many motorists across the country to leave their vehicles.

This decline in fuel use is considered as an early indicator of weakening industrial activity and decreased consumer expenditure, heightening fears among analysts about the possibility of a recession.