Tough economic times are expected ahead this year after Kenya’s taxman missed his half-year revenue collection target.
According to the records, Kenya Revenue Authority has missed its half year revenue collection target by a total of 47.6 billion shillings.
Economic analysts are now foreseeing a huge budget deficit ahead with the economy being widely affected.
Last year, Kenya Revenue Authority failed to hit its target in two occasions, raising eyebrows among the public as well as the stakeholders with allegations of corruption surfacing among the officials. This forced President Uhuru Kenyatta to order a lifestyle audit to all KRA officials late last year.
According to the data at the treasury, the missing out of the target by the Kenya Revenue Authority is a result of a huge shortfall in the ordinary revenue collection that resulted to a deficit of 26 billion shillings in Pay-As-You-Earn, being revenue collected from salaried individuals as well as 15.9 billion shillings off the Value Added Tax collection from mainly from the imported goods.
According to the report released, the total revenue collected including Appropriations-In-Aid totaled to 575.2 billion shillings against what KRA had set vas target of 642.9 billion shillings at the end of December 2015 giving a total of 67.7 billion shillings off the target.
Late last year, Kenya Revenue Authority missed its target by 28 billion shillings after it collected a total of 300 billion shillings against the target of 328 billion shillings.
According to KRA, the shortfall is also as a result of the difficult operating environment facing the corporate sector, which is a huge contributor to the revenue in the country. This tough condition has forced most companies to issue warning to their investors, some of whom have put to a hold their investment plans.
Already 18 companies have issued profit warning threatening the situation even further.
Article by Juma Fred.