Six month revenue collection up 6.6pc

Six month revenue collection up 6.6pc

The Kenya Revenue Authority increased tax revenue collection by 6.6 percent in the six month period between July and December.

During the first half of the 2017/18 financial year, the taxman collected Sh630.3 billion up from Sh591 billion a year earlier.

The collection comes despite heightened political campaigns during the period that saw business activity slow down.

Private sector lending has also dropped as commercial banks continue to adjust to the interest cap regime.

Despite the increase in collection, KRA still remains off target to raise Sh1.4 trillion by June this year.

Speaking during a public budget participation conference, Treasury cabinet secretary Henry Rotich had indicated that ordinary revenue underperformed the five month target to November by Sh29.7 billion.

Mr Rotich however exuded confidence that the KRA would be able to accelerate collection and hit its target in the first half of this year.

Slow revenue collection has already seen the government initiate austerity measures as it seeks to cut spending to ensure it meets its financial obligations.

The treasury has also been forced to re appropriate part of its development spending budget to current expenditure which at the end of December stood at Sh413 billion.

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