Kenya Revenue Authority (KRA) collected Kshs 1.499 trillion in revenues in the seven months period to end of January 2024. The revenue collection represents an increase of 14.4% when compared to the same period in fiscal year 2022-2023.
“Over the course of the fiscal year, revenue performance is anticipated to improve in light of improved tax administration,” National Treasury Principal Secretary Dr Chris Kiptoo said.
He was speaking in Parliament during a meeting with the Departmental Committee on Finance and National Planning on processing of the 2024 budget policy statement.
Dr Kiptoo said the government has put up elaborate plan to promote economic transformation for shared growth through formulation, implementation and monitoring of prudent economic and financial policies at national and county levels of government.
He said the government has provided a conducive environment to ensure low and stable inflation and interest rates, as well as stable exchange rate and improve mobilization and management of external resources.
Similarly, the Treasury will work to manage public debt efficiently and effectively; optimize cash management and effectively administer the government’s financial system; enforce proper management, control and accounting of public funds and provide independent, objective assessments of the soundness of risk management strategies and practices, management control frameworks, systems and practices.
Over the next four years, the Government will scale up efforts on policy and structural reforms under the Bottom-Up Economic Transformation Agenda (BETA) in order to navigate the global turbulence, accelerate economic recovery, and address overarching development challenges namely creating jobs, eradicating poverty and mitigating climate change.
As part of the process, the Government has embarked on the implementation of the Medium-Term Revenue Strategy (MTRS) that will further strengthen tax revenue mobilization efforts to over 20 percent of GDP over the Medium Term.
In addition, tax administration by the Kenya Revenue Authority will be strengthened through scaling up use of technology to seal leakages. In part, this will involve enhancements of iTax and Integrated Customs Management System (iCMS) and usage of Tax Invoice Management System (e-TIMS).
In the 2024/2025 budget, revenue collection including Appropriation-in-Aid is projected at Ksh 3.435 trillion (19.1% of GDP). Of this, ordinary revenue is projected at Ksh 2.948 trillion (16.4% of GDP).
On the other hand, total expenditure is projected at Ksh 4.188 trillion (23.2% of GDP); comprising of recurrent expenditure of Ksh 2.859 trillion (15.9% of GDP); development expenditure of Ksh 877.8 billion (4.9% of GDP); transfer to County Governments of Ksh 446 billion (includes Ksh 391.1 billion for equitable share and Ksh 54.9 billion in additional allocations); and Ksh 5 billion for Contingency Fund.
The resulting fiscal deficit including grants of Ksh 703.9 billion (3.9% of GDP) in 2024/2025 will be financed by a net external financing of Ksh 326.1 billion (1.8% of GDP) and a net domestic financing of Ksh 377.7 billion (2.1% of GDP).
The growth for 2024 is projected to remain strong at 5.5% compared to the 4.8 percent growth in 2022.