Treasury sets KRA Sh1.7tr target

The Kenya Revenue Authority (KRA) has been given the herculean task of raising Sh1.7 trillion in the next financial year.

Treasury estimates present to cabinet indicate that revenue collection is expected rise, further piling pressure on the taxman to expand its tax base.

KRA is expected to collect Sh1.3 trillion in the current financial year, which ends on June 30.

The National Treasury has crafted a Sh2.6 trillion budget for the 2017/2018 financial year up from Sh2.5 trillion currently.

By the end of December, KRA had collected Sh591.2 billion of the Sh1.33 trillion printed estimates.

The government has over the years raised the KRA’s targets to fund the government’s ever expanding budget.

“The allocations in the FY 2017/18 Budget will broadly remain the approved Budget Policy Statement (BPS) 2017,” reads a cabinet statement.

The treasury is also expected to engage development partners to secure Sh256.1 billion to fund the budget.

“Donor commitments have been firmed up and disbursements are expected to hit Sh256.1 billion in both grants and loans,” cabinet said

While KRA has on occasion fallen short of its target, it has progressively increased the amount it’s able to collect.