The Kenya Revenue Authority (KRA) collected KSh 2.407 trillion in the 2023/24 financial year, an increase of 11.1 per cent compared to KSh 2.166 trillion in the previous financial year.
The revenue collection has been on an increase for the last four years, growing to KSh 2.031 trillion in the financial year 2021/22 from KSh 1.669 trillion in the 2020/2021 financial year.During the 2023/24 financial year, Domestic Taxes registered a revenue growth of 14.4 per cent after collecting KSh 1.611 trillion against a target of KSh 1.677 trillion. This translates to a performance rate of 96.1 per cent.Customs Revenue recorded a performance rate of 94.6 per cent with a collection of KSh 791.368 billion. This translates to a revenue growth of 4.9 per cent, compared to the same period in FY 2022/2023.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.
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, amongst others.
During the financial year ending 30th June, 2024, KRA collected agency revenues amounting to KSh 184.036 billion, reflecting a growth of 34.9% compared to the last financial year.
Economic EnvironmentThe revenue performance reflects the prevailing economic indicators, 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 6.86% in the first half of FY 2023/24, mainly driven by elevated prices of commodities due to high fuel and energy prices.
However, inflation eased to an average of 6.29% in the third quarter and further down to 4.87% in the fourth quarter of FY 2023/2024. This was attributed to the monetary policy deployed by the Central Bank of Kenya.
Overall, inflation averaged at 6.22% in FY 2023/24, compared to an average of 8.78% in FY 2022/2023.
See Also:
KRA Collects Sh135B More In FY 2022/23
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