In the financial year 2022/2023, the Kenya Revenue Authority (KRA) collected Ksh.2.166 trillion in taxes, up 6.7% from Ksh.2.031 trillion the previous financial year.
The slowing domestic economic growth in 2022, which decreased to 4.8 percent from 7.6 percent in 2021, had an impact on revenue performance, the taxman said.
KRA credited the growth to the economy’s strong performance in a number of areas, including taxes on international trade and transactions, excise taxes, income, profit, capital gains taxes, taxes on goods and services, and property taxes.
Excise on gambling outperformed expectations by 116.2%, earning Ksh. 6.640 billion as opposed to a Ksh. 5.715 billion target.
Domestic VAT collection was Ksh. 272.452 billion, an increase of 11.3% from the previous year.
Domestic taxes had an 8.5% increase in revenue during the fiscal year after collecting Ksh. 1.481 trillion instead of the targeted Ksh. 1.407 trillion. This corresponds to a 95.0% performance rate.
With Ksh.68.124 billion in collections in FY 2022–23, KRA saw a growth of 2.8%, translating to a performance rate of 91.4%.
By enlisting 940,483 more active taxpayers, KRA increased its tax base, raising an additional Ksh.14.64 billion over the time period under review.
With a revenue of Ksh. 263.819 billion, corporation tax performed at 94.2%. This represents an increase of 9.0% from the previous fiscal year.
KRA received Ksh.5.328 billion in total from digital businesses, which represents an increase of 207.9% as compared to the same period in the financial year 2021–2022.
Revenue collection steadily increased from Ksh.1.58 trillion in FY2018/2019 to Ksh.2.166 trillion in FY2022/23, or a gain of 37% over the last five years.
