Blow to Ruto as KRA misses tax targets by Sh27bn despite the aggressive push
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KRA misses tax targets by Sh27bn in William Ruto's presidency despite the aggressive push to boost revenue collection
KRA misses tax targets by Sh27bn in William Ruto’s presidency despite the aggressive push to boost revenue collection.
In spite of President William Ruto’s strong campaign to root out tax cheats and increase receipts, the Kenya Revenue Authority (KRA) missed its revenue collection targets by Sh27 billion in the three months leading up to December.
In the three months leading up to December, tax revenue from five primary streams—payroll, corporate, VAT, excise, and import duty—amounted to Sh466.46 billion, falling short of the target of Sh493.11 billion.
With a collection of Sh33.10 billion for the quarter, other revenues, comprising investments, penalties, levies, and forfeitures, fell short of their objective by Sh6.16 billion.
In the current fiscal year, which ends in June, the Treasury intends to raise tax revenue by Sh274.1 billion, or 14.29 percent, to Sh2.19 trillion while reducing borrowing.
By partially integrating the KRA’s tax collection system with mobile financial platforms, Dr. Ruto aims to catch people who do not pay taxes on their income.
Also, his government is pushing for increased consumption taxes and making sure that landowners are paying their due share.
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Due to extreme inflation and decreased economic activity, which have strained household budgets, lowered consumer purchasing power, and harmed tax collections, core revenues underperformed by 6.16 percent.
The collections in the quarter, however, represent a growth of 8.44 percent over the Sh460.67 billion KRA netted in a similar period a year earlier.
In the same quarter of the previous year, the ordinary revenue outperformed the target by Sh20.51 billion or 4.66 percent.
Ruto has directed KRA to “collect every shilling due” regardless of the powers wielded by persons or companies from whom payment is due.
This has prompted the opposition to the nickname William Ruto “Zakayo” — Swahili for biblical Zacchaeus who was a chief tax collector at Jericho.
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