The Kenya Revenue Authority (KRA) has revealed that the overall revenue collected for the first half of 2017/18 financial year grew by 62.5 billion shillings to 712.2 billion shillings from 649.7 billion shillings recorded in the previous year.
KRA further noted that Exchequer Revenue grew more strongly by 10 percent reaching 664.77 billion shillings up from 604.27 billion shillings in FY 2016/17.
This growth compares well with the 3-year average Exchequer Revenue growth of 10.5 percent. The overall growth, representing 9.6 percent rise was recorded against the backdrop of a depressed economic climate occasioned by the prolonged election cycle that stretched for the better part of the calendar year 2017.
According to KRA Commissioner General, John Njiriani, the election process adversely affected business confidence and depressed consumer spending, leading to a weak performance in consumption related taxes especially in the non-essential goods sectors including beverages.
Njiriani further noted that the delayed normalization of the Government’s fiscal programme adversely impacted both public and private sector tax remittances, the latter due to the delayed settlement of bills.
Overall, economic growth for the period slowed to an estimated 4.4 percent against the 6.0 percent used in Budget Policy Statement projections.
KRA is now focusing on leveraging the improved business environment in the second half following the conclusion of elections, a development expected to lead to a normalized Government fiscal programme and improved business climate.