KRA collects Sh124.7Bn in January but falls behind in 6-month target
NAIROBI, Kenya, Feb 26 – The National Treasury has reported revenue collection of Sh124.71 billion in the month of January bringing the total revenue collection to Sh781.6 billion for the seven months from July 2017.
The government had targeted to collect Sh701.7 billion in the first six months but has fallen short of the target by Sh45 billion due to the underperformance of excise duty, VAT Imports, and PAYE.
In a statement of revenues and expenditure published in a gazette notice, the Government borrowed Sh166.43 billion from the domestic market while also receiving Sh10.7 billion in form of a commercial loan out of Sh250 billion it intends to borrow.
In terms of disbursements, recurrent expenditure as at end January 2018 stood at Sh505.77Bn – 53.8pc – while development spending lagged behind with a 31.41pc absorption rate
During the same period, the national government disbursed a third of the Sh306 billion designated for county governments with Nairobi and Mombasa counties receiving Sh8.7 billion and Sh3.6 billion respectively.
KRA has outlined measures to boost revenue mobilization including a complete overhaul of the current Income Tax Act, strengthening tax administration and expansion of the tax base.