Data from National Treasury indicates that total revenue collection in the month of August totaled 108.70 billion shillings where 105.83 billion shillings were in tax revenue and 2.87 billion shillings in non-tax revenue.
Revenue collection in the two months summed up to 207.67 billion shillings, that is, 204.79 billion shillings in tax revenue and 2.88 billion shillings in non-tax revenue.
Public debt repayments totaled 49.84Bn in August, representing 45.85 percent of the month’s total revenue collection.
Expenditure towards recurrent and development totaled 83.75 billion shillings and 11.69 billion shillings respectively. In aggregate, recurrent expenditure totaled 133.23 billion shillings in the first two months of the financial year.
Disbursements to county government summed up to 4.03 billion shillings in August. Overall, tax revenue collection at 204.79 billion shillings is behind schedule by 76.92 billion shillings on a pro-rated basis as at end August.
The Supplementary Appropriation Act 2018 has reduced the revenue target by 37.60 billion shillings in FY2018/19 with the cut in recurrent and development expenditure by 9.06 billion shillings and 28.54 billion shillings respectively.
GDP Growth
The gross domestic growth rate for the second quarter of 2018 was estimated at 6.30 percent as compared to 4.70 percent growth recorded in 2Q17.
Positive growth during the quarter was recorded in the agriculture, manufacturing, electricity & water supply, wholesale & retail trade, accommodation & restaurant, information & communication, and real estate sectors.
The agriculture sector which grew 5.60 percent (0.80 percent in 2Q17) was bolstered by the favorable weather conditions spread out across the country.
Manufacturing sector posted a growth of 3.10 percent (-0.20 percent in 2Q17) partly attributed to the agro-processing sub-sector.
In 2Q18, private sector business sentiment improved with Purchasing Managers Index (PMI) print averaging 55.60 in the period against 49.17 in 2Q17