Kenya Tax Receipts at Ksh Ksh.122.6 bn in May

Kenya’s National Treasury has reopened three bonds to raise Ksh 60 billion in October for budgetary support.

Kenya’s total receipts in May of the current fiscal stood at Ksh 122.6 billion trillion. 

This is according to data from the National Treasury’s statement of actual revenues and net exchequer issues across 11 months of the 2020/21 financial year to May 31, published on Friday. 

In the period, tax receipts in 11 months stand at Ksh.1.313 trillion, a similar level to the combined collections of Ksh.1.33 trillion at the same time last year.

Non-tax revenues registered a dip at Ksh 459.3 million during the month to Ksh 80.6 billion. 

According to Genghis Capital Analysts, the numbers “signals an overall tax receipts deficit of Ksh 37.2 billion in the current fiscal year.”

Genghis as a result expects an outsized tax collection in June with only Ksh156.6 billion yet to be realized this fiscal year against the target (Ksh1,469.7 billion).

On the other hand, Cytonn Investments in a note says the revenue underperformance for FY ‘2020/2021 was expected given the ravaging effects of the COVID-19 pandemic on the economy for most parts of 2020. 

“We expect the government to fall short of its revenue target as it currently has Kshs 122.0 billion in deficits. With less than a month before the end of the current fiscal year.”

“We believe that the government will continue to borrow aggressively to bridge the Kshs 122.0 billion deficit.”

Kenya Received $315.8 million in Remittances in May: CBK Report