Kenya’s revenue collection in the Fiscal year 2022/23 is estimated to rise by 18 percent. The Parliamentary Budget Office (PBO) noted that the revenue collection will stand at 2.405trillion shillings from the projected 2.036 trillion shillings in 2021/22.
The total revenue collected in the previous fiscal year was 1.669 trillion shillings compared to 1.607 trillion shillings collected in Financial Year 2019/20.
According to draft 2022, Budget Policy Statement (BPS) estimates released Monday 15th November 2021, the ongoing reforms in tax policy and revenue administration will continue to foster high revenue performance.
“In the FY 2022/23 revenue collection including Appropriation-in-Aid (A.i.A) is projected to increase to 2.405 trillion shillings (17.2 percent of GDP) up from the projected 2.036 trillion shillings (16.3 percent of GDP) in the FY 2021/22. Ordinary revenues will amount to 2.142 trillion shillings (15.3 percent of GDP) in FY 2022/23 from the estimated 1.800 trillion shillings (14.4 percent of GDP) in FY 2021/22,” read part of the statement.
Overall, PBO estimated the total expenditure and net lending for the next financial year at 3.298 trillion shillings, a 23.6 percent decline from the projected 3.154 trillion shillings in the FY 2021/22 budget.
The expenditures comprise recurrent of 2.175 trillion shillings and development of 0.712 trillion shillings
As part of KRA’s commitment to accelerate revenue collections and plug revenue losses, the Authority is rolling out its 8th Corporate Plan, whose theme is Revenue mobilization through tax simplification, technology-driven compliance, and tax base expansion.
KRA Deputy Commissioner in charge of Marketing and Communications Grace Wandera said KRA is actively utilizing technological solutions, including social media monitoring tools to monitor Kenyans who are not in tax compliance.
KRA collected Kshs.154.383 billion In October against a target of Kshs.142.285 billion, recording an impressive 108.5% performance.
Data from the Credit Suisse report indicates that despite being overwhelmed by debts estimated at over 7 trillion shillings (USD 64.22 billion), Kenya is the fourth richest in the African continent after Nigeria, South Africa, and Egypt, with total wealth estimated at USD 338 billion (both financial and non-financial wealth) as of 2020.
The taxman has a bag of new year tax changes in an attempt to increase the tax base.
With the 2021 festive season fast approaching, it could well be the most expensive season for Kenyans due to the increase in prices of essential food products.
From an average of 130 shillings registered a month ago, a kilo of sugar will now cost 10 shillings more, that is, a kilogram will go for 140 shillings while the cost of a liter of cooking oil has risen from 250 recorded in October to 300 shillings.