May tax receipts rise by 36pc to Ksh.122.6 billion


May tax receipts rise by 36pc to Ksh.122.6 billion
KRA offices in Nairobi's Times Tower. PHOTO | COURTESY

In Summary

  • The growth in receipts marks a continued normalization of government revenues following the impact of the COVID-19 pandemic which struck collections in April last year.
  • Cumulatively, tax receipts in 11 months now stand at Ksh.1.313 trillion, a similar level to the combined collections of Ksh.1.33 trillion at the same time last year.
  • To meet its revised collection target for the year, the Kenya Revenue Authority (KRA) will require collections of atleast Ksh.140 billion by the end of June to top the Ksh.1.47 trillion target.

Tax receipts in May grew by 36.4 per cent to Ksh.122.6 billion from a low Ksh.89.8 billion in May last year.

This is according to data from the National Treasury statement of actual revenues and net exchequer issues across 11 months of the 2020/21 financial year to May 31, published on Friday.

The growth in receipts marks a continued normalization of government revenues following the impact of the COVID-19 pandemic which struck collections in April last year.

Cumulatively, tax receipts in 11 months now stand at Ksh.1.313 trillion, a similar level to the combined collections of Ksh.1.33 trillion at the same time last year.

However, non-tax revenues registered a rare dip, shedding Ksh.459.3 million during the month to Ksh.80.6 billion.

Combined, tax receipts and non-tax revenues make up ordinary revenue.

To meet its revised collection target for the year, the Kenya Revenue Authority (KRA) will require collections of atleast Ksh.140 billion by the end of June to top the Ksh.1.47 trillion target.

The tax man’s collections have been boosted this year by the gradual lifting of COVID-19 restriction measures including the adjustment of curfew hours.

Nevertheless, the collections remain threatened by the potential return to tougher restriction measures as a fourth wave of COVID-19 infections beckon.

The hit of the pandemic on collections saw the National Treasury revised KRA’s annual tax targets from a higher Ksh.1.568 trillion.

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