August tax receipts hit Ksh.125.3 billion

August tax receipts have risen to Ksh.125.3 billion from a lower Ksh.93.5 billion at the same stage last year as the tax man continues to see a rebound in collections after last year’s slack.

This represents a 34 per cent rise in receipts as reported in the statement of actual revenues and net exchequer issues as of August 31 by the National Treasury, published on Friday.

Cumulative tax receipts through the first two months of the new 2021/22 financial year stand at Ksh.247.2 billion in contrast to Ksh.188.1 billion in August 2020.

Meanwhile, cumulative non-tax revenues in the period stand at Ksh.3.9 billion, a sum nearly triple the Ksh.1.4 billion raised in July and August last year.

Kenya Revenue Authority (KRA) collections have remained steady as the economy remains largely open following stricter collections on movement and enterprise for the better part of 2020.

The tax man is tasked with mobilizing Ksh.1.707 trillion in pure tax receipts by the end of June 2022.
KRA has therefore met a representative 14.5 per cent of its expected annual target.

To top the lower mark set by the exchequer, KRA will have to collect an average of Ksh.146 billion in the remaining 10 months of the fiscal year.

During the same period, the government has borrowed Ksh.200.3 billion from the domestic credit market and Ksh.1.7 billion externally to firm up its funding base.

Domestic borrowing is tipped to hit Ksh.1.008 trillion in gross terms by June next year while external loans and grants are estimated at Ksh.379.7 billion.

Total revenue for the fiscal year is meanwhile estimated at Ksh.3.193 trillion, a sum total of revenues mobilized and borrowings.