KRA February tax receipts grow by 24.2 percent

Kenya Revenue Authority (KRA) tax receipts booked by the National Treasury grew for the first time since the pandemic in February.

According to new exchequer data covering the month of February published on Friday, tax revenues grew by 24.2 percent to Ksh.121.3 billion. This from a lower Ksh.97.7 billion in February 2019.

The notable rise in revenue collection by the KRA is widely attributable to the continued resumption of economic activity following the initial shocks of the COVID-19 pandemic last year.

The tax man efforts have further found anchoring from the implementation of new taxes such as the digital services tax (DST) and the minimum tax at the start of the year.

Cumulatively tax collected to the end of February stands at Ksh.906.2 billion or about 57.8 per cent of the Ksh.1.567 trillion target with four months to the end of the fiscal year.

Similarly, non-tax revenues representing penalties and other levies rose to Ksh.10.3 billion from Ksh.8 billion at the same stage last year.

Across the last 12 months, KRA has struggled to raise revenues on the back of a lethargic operating environment which ended in a double digit decline in tax collected at the half year stage.

Despite optimism in collections for the remainder of the financial year, the tax man will still be in squeeze to collect an estimated Ksh.661 billion or about Ksh.165.3 billion every month.

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