Kenya’s tax collector reported a 102.6% stellar revenue performance on Monday surpassing its January target by Ksh 3.53 billion.
Kenya Revenue Authority (KRA) collected Ksh. 142 billion against a target of Ksh. 138 billion representing 6.7% growth over the same period last year.
This was the second month running that KRA posted an improved and above target performance since the outbreak of Covid-19.
In December, KRA collected KSh166 billion against a target of KSh164 billion representing 3.5 per cent growth over the same period in 2019.
The improved performance has been attributed to the economic recovery following the relaxation of the COVID-19 containment measures and enhanced compliance efforts by KRA. These included the reversal of; VAT rate from 14% to 16%; PAYE top marginal rate from 25% to 30%; Corporation Tax rate to 30% from 25%, among other policy initiatives. The revision of these tax rates meant an increase in the revenue that KRA collects.
— Githii Mburu, CBS (@CG_KRA) February 8, 2021