The Kenya Revenue Authority (KRA) has stated that its tax collections increased by 10.6%, which is a major improvement from the 6.8% growth recorded in the previous financial year, despite the economy being in what it referred to as tough times.
According to KRA, the increase is attributed to various factors such as continued digitization of the tax administration, improvement in compliance, and better cash collections.
Additionally, KRA said the revenue collection is a clear indicator of the strength and resilience of the Kenyan economy.
KRA explained that the increase in collections is as a result of many hindrances in the economy all through the year, such as rising costs and inflation.
The positive revenue collections will help the government deliver services and implement its development initiatives while reducing its dependence on loans.
However, the announcement comes amid mounting questions raised by both corporations and taxpayers regarding the tax burden in the country, with calls for measures that strike a balance between increasing the government’s revenue and ensuring economic progress.
While the government is stepping up its efforts to meet an ambitious revenue target, figures released by the KRA indicate that the new collection schemes are working well, but it is likely that the discussion about how to increase the amount of money collected while minimizing the burden on taxpayers will continue.
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