KRA has registered a notable 11.1% increase in revenue of Kshs. 2.407 Trillion in the 2023/2024 financial year from 6.4 % in the previous financial year which translates to a performance rate of 95.5% against the target.
The Exchequer revenue grew by 9.5% after KRA collected Kshs. 2.223 Trillion compared to Kshs. 2.030 Trillion collected in the previous financial year which translates to a performance rate of 95.8% attributable to the roll out of electronic Tax Invoice Management System e-TIMS
Additionally, KRA collects revenue on behalf of other government agencies, mainly at the ports of entry including the Housing Levy collecting up to 184.036 Billion shillings, reflecting a growth of 34.9% compared to the last financial year.
This, despite the year under review being characterized by multiple economic shocks that included depreciation of the Kenya Shilling against the US Dollar, rising bank lending rates and international conflicts that disrupted supply chains, among others.
The revenue performance reflects the prevailing economic indicators, especially the GDP growth of 5.6% in 2023 calendar year (Economic Survey 2024), compared to a growth of 4.9% in 2022.
The overall inflation rate averaged at 6.86% in the first half of FY 2023/24, mainly driven by elevated prices of commodities due to high fuel and energy prices. However, inflation eased to an average of 6.29% in the third quarter and further down to 4.87% in the fourth quarter of FY 2023/2024. This was attributed to the monetary policy deployed by the Central Bank of Kenya. In summary, inflation averaged at 6.22% in FY 2023/24, compared to an average of 8.78% in FY 2022/2023.