KRA issues clarification on revenue collection shortfall
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KRA issues clarification on revenue collection shortfall amid the cash crunch facing the country
KRA issues clarification on revenue collection shortfall amid the cash crunch facing the country.
The Kenya Revenue Authority(KRA) on Monday, April 10, issued a clarification on reports regarding its revenue mobilization.
The authority said in a statement that it used cutting-edge technology that was effective and provided strict supervision, leaving no possibility for money diversion. The statement was signed by Acting Commissioner General Rispah Simiyu.
The authority also said that it has taken steps to obtain and mobilize funds for national development.
“KRA’s attention has been drawn to various statements on different media platforms on its operations and in particular revenue mobilization.
“KRA has invested in modern technology which works as the revenue collection and settlement system from source to the exchanger. With this in place, there is no room for revenue diversion as strict surveillance plugs revenue loopholes,” the statement read in part.
Further, the taxman noted that it had kept pace with revenue collection compared to previous years stating that at the end of March 2023, it had collected Ksh1.554 trillion.
“As at the close of March 2023, revenue collection averaged 95.1 percent on original target and 93.4 percent on Supplementary target, representing a collection of Ksh1.554 trillion and a year-on-year 8 percent growth.
“KRA continues being a professionally managed public organization comprising of competent staff, management, and board leadership delivering their mandate within the staff code of conduct,” the statement added.
Additionally, KRA noted that it was committed to bridging the deficit on target through the implementation of the Revenue Enhancement Initiative(REI).
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“REI includes the roll-out of eTIMS for efficient and effective VAT collection, integration of KRA systems with betting companies leading to the improved collection in Excise Tax on betting and withholding Tax on winnings.
“Amicable settlement of tax disputes through Alternative Disputes Resolution(ADR) and Tax Base Expansion aimed at bringing more taxpayers into the tax bracket,” it added.
The clarification came in response to fears about the government’s financial constraints that were addressed by Treasury Cabinet Secretary Njunguna Ndung’u on April 8. He noted that the issue would be addressed once there were enough resources for both recurrent and development expenses.
The Azimio la Umoja alliance, led by minority leader Opiyo Wandayi, demanded an assessment of government finances after it was reported that the nation was about to declare bankruptcy, despite claims to the contrary from some MPs.
However, on Sunday, April 9, Deputy President Rigathi Gachagua said that the National Treasury gave repaying maturing loans priority, which delayed the disbursement of salary for public employees.
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