KRA’s Statement on Revenues Collected in Year Ended June 30 2024

Despite significant growth, the Kenya Revenue Authority (KRA) fell short of its revenue collection target for the financial year ended June 2024. KRA managed to collect Ksh2.407 trillion, representing an 11.1% increase from the Ksh2.16 trillion collected in the previous financial year. However, this figure is below the revised target of Ksh2.5 trillion, initially set at Ksh2.787 trillion.

Performance Overview

The KRA's revenue collection efforts were impacted by various economic challenges throughout the year.

• Revenue Growth: The KRA recorded an 11.1% increase in revenue, collecting Ksh2.407 trillion compared to Ksh2.16 trillion in the previous year.
• Exchequer Revenue: The Exchequer revenue grew by 9.5%, with KRA collecting Ksh2.233 trillion against Ksh2.030 trillion from the previous financial year.
• Agency Revenues: Revenues collected on behalf of other government agencies grew by 34.9%, totaling Ksh1.84.036 billion.

Economic Factors Affecting Revenue Collection

According to KRA, several factors affected its revenue generation efforts including:

• Depreciation of the Kenya Shilling against the US Dollar
• Rising bank lending rates
• International conflicts disrupting supply chains
• Increased inflation rates averaging at 6.8% in the first half of FY 2023/24, before rebounding to 4.5% in the fourth quarter

Historical Performance and Future Targets

The KRA has struggled to meet its revenue targets in recent years. In 2023, it missed its target by 5%. The last time KRA met its revenue target was in June 2022, when it collected Ksh2.03 trillion against a target of Ksh1.88 trillion.

Looking ahead, the KRA has set an ambitious target of Ksh2.95 trillion for the financial year 2024/2025.

Here is KRA's Full Statement on Taxes Collected in 2023/2024

Revenue mobilization for the financial year 2023/2024 grew by a notable 11.1% up from 6.4% in the previous financial year, after KRA collected Ksh3.207 Trillion compared to Ksh2.166 Trillion in the previous financial year. This translates to a performance rate of 95.5% against the target.

The year under review was characterized by multiple economic shocks that included depreciation of the Kenya Shilling against the US Dollar, rising bank lending rates and international conflicts that disrupted supply chains, among others. These factors affected revenue mobilization efforts.

The Exchequer revenue grew by 9.5% after KRA collected Ksh2.233 Trillion compared to Ksh2.030 Trillion collected in the previous financial year. This translates to a performance rate of 95.8%.

Additionally, KRA collects revenue on behalf of other government agencies, mainly at the ports of entry. These include Road Maintenance Levy, Air Passenger Service Charge, Aviation Revenue, Petroleum Development Fund, Petroleum Regulatory Levy, housing levy, among others. During the financial year ending 30th June, 2024, KRA collected agency revenues amounting to Ksh1.84.036 Billion, reflecting a growth of 34.9% compared to the last financial year.

Economic Environment

The revenue performance reflects the prevailing economic indices, especially the GDP growth of 5.6% in 2023 calendar year (Economic Survey 2024), compared to a growth of 4.9% in 2022.

The overall inflation rate averaged at 6.8% in the first half of FY 2023/24, mainly driven by elevated prices of commodities due to high fuel and energy prices. However, inflation rebounded to an average of 4.8% in the third quarter and averaged 4.5% by the fourth quarter of FY 2023/2024. This was attributed to interventions in public policy by both the Central Bank of Kenya and the Treasury. Inflation averaged at 6.2% in FY 2023/24, compared to an average of 5.8% in FY 2022/2023.

Customs and Domestic Taxes Performance

During the financial year, Domestic Taxes registered a revenue growth of 11.4% after collecting Ksh1.611 Trillion against a target of Ksh1.677 Trillion. This translates to a performance rate of 96.1%.

Customs Revenue recorded a performance rate of 94.6% with a collection of Ksh791.368 Billion. This translates to a revenue growth of 4.9%, compared to the same period in FY 2022/2023.

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