KRA Ranked Among The Best Parastatals In Kenya

The Kenya Revenue Authority (KRA) has recently been ranked as the third-best performing parastatal in Kenya, according to an extensive report compiled by Kenya Trak Research Firm.

This ranking highlights the KRA’s significant strides in fulfilling its mandate as the nation’s chief tax collector and underscores its growing role in shaping the financial landscape of the country. The ranking placed KRA just behind the National Irrigation Authority, which scored 73.2 percent, and the Athi Water Works Development Agency, which followed closely with 72.8 percent.

KRA’s impressive score of 71.1 percent reflects not only its operational efficiency but also its growing reputation for customer service and innovation in revenue collection.

As the sole body responsible for collecting the country’s revenues, KRA’s performance is a key determinant of Kenya’s economic trajectory. The funds KRA collects are the lifeblood of the national budget, directly impacting government projects, infrastructure development, social services, and more.

The National Treasury depends on KRA’s efficiency in revenue collection to fund crucial sectors like healthcare, education, and infrastructure, which ultimately drive the country’s development agenda. Therefore, a well-performing KRA doesn’t just benefit the agency itself but has far-reaching implications for the nation’s future.

The financial year 2023/2024 was particularly noteworthy for KRA, as the authority posted remarkable growth in its revenue collection efforts. KRA collected an impressive KSh 2.407 trillion, marking an 11.1 percent increase from the previous year’s collection of KSh 2.166 trillion. This growth is substantial, especially when compared to the more modest increase of 6.4 percent recorded in the previous year.

Achieving 95.5 percent of its revenue target, KRA demonstrated its ability to rise to the occasion even under challenging economic conditions, including post-pandemic recovery and inflationary pressures. This performance speaks volumes about the efficiency of KRA’s internal systems, strategic planning, and its commitment to expanding the tax base.

In addition to financial performance, KRA’s customer satisfaction levels have also seen a notable improvement. The Authority’s customer satisfaction rating increased from 72.5 percent in July 2021 to 73.8 percent by June 2024, a testament to the organization’s efforts in improving taxpayer relations. This reflects KRA’s continuous investments in customer-centric strategies, such as digitization of services, automation, and streamlining of processes to make tax compliance simpler and more accessible for businesses and individuals alike.

Further illustrating KRA’s progress is the significant improvement in pre-arrival clearance ratings. This critical metric, which indicates how efficiently goods are cleared before their arrival at Kenyan borders, saw a sharp increase from 25.28 percent in July 2021 to an impressive 40.6 percent by June 2024. This improvement points to enhanced coordination between KRA, importers, and other stakeholders, ensuring faster clearance of goods, reducing congestion at ports, and ultimately making Kenya a more attractive destination for international trade.

The KRA’s performance in recent years highlights its pivotal role in Kenya’s economic development. The Authority has not only succeeded in expanding its revenue collection capabilities but has also made substantial efforts to improve its relationship with taxpayers, invest in cutting-edge technology, and enhance service delivery. Its ranking as the third-best parastatal reflects the positive strides KRA continues to make, positioning it as a key player in driving the nation’s socio-economic transformation.

Looking ahead, KRA’s focus on modernization, stakeholder engagement, and expanding the tax base will likely see it rise even higher in future rankings, as it continues to evolve and refine its operations to meet the demands of an ever-changing economic landscape. The recognition by Kenya Trak Research Firm is a well-deserved nod to an institution that not only collects revenue but also acts as a catalyst for national growth and prosperity.

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