Kenya’s total tax revenue in July of the current fiscal surged 7.2 per cent to Ksh.130.6 billion compared to Ksh.121.8 billion in FY 2021/22.
The statement of actual revenues and net exchequer issues as of July 29 by the National Treasury was published Friday.
| FY’2022/2023 Budget Outturn – As at 29th July 2022 | |||||
| Amounts in Kshs billions unless stated otherwise | |||||
| Item | 12-months Original Estimates | Actual Receipts/Release | Percentage Achieved | Prorated | % achieved of prorated |
| Opening Balance | 0.6 | ||||
| Tax Revenue | 2,071.9 | 130.6 | 6.3% | 172.7 | 75.6% |
| Non-Tax Revenue | 69.7 | 1.9 | 2.8% | 5.8 | 33.6% |
| Total Revenue | 2,141.6 | 133.2 | 6.2% | 178.5 | 74.6% |
| External Loans & Grants | 349.3 | 27.9 | 8.0% | 29.1 | 95.7% |
| Domestic Borrowings | 1,040.5 | 15.6 | 1.5% | 86.7 | 18.0% |
| Other Domestic Financing | 13.2 | 2.8 | 21.0% | 1.1 | 251.5% |
| Total Financing | 1,403.0 | 46.2 | 3.3% | 116.9 | 39.5% |
| Recurrent Exchequer issues | 1,178.4 | 66.8 | 5.7% | 98.2 | 68.0% |
| CFS Exchequer Issues | 1,571.8 | 89.5 | 5.7% | 131.0 | 68.4% |
| Development Expenditure & Net Lending | 424.4 | 0.0 | 0.0% | 35.4 | 0.0% |
| County Governments + Contingencies | 370.0 | 23.0 | 6.2% | 30.8 | 74.6% |
| Total Expenditure | 3,544.6 | 179.3 | 5.1% | 295.4 | 60.7% |
| Total Borrowing | 1,389.8 | 43.5 | 3.1% | 115.8 | 37.5% |
“As expected, the revenue performance for the first month of the FY’2022/2023 is not plausible mainly due to the economic uncertainties that emanated from the elevated inflationary pressures and the heated political environment,” according to Cytonn Investments.
“The slow-down in the economic environment was evidenced by the decline in the July PMI to 46.3, from 46.8 in June 2022 and is expected to remain subdued in the short term as consumers continue to cut on spending.”
The government is 43.1% behind its prorated borrowing target of Kshs 79.9 billion, having borrowed Kshs 45.5 billion of the Kshs 581.7 billion borrowing targets for the FY’2022/2023.
The Kenya Revenue Authority expects to collect Ksh.2.072 trillion in tax revenues in the current fiscal year to the end of June 2023, having netted a record Ksh.1.918 trillion in tax revenue receipts in the year ended June 2022.
Kenya expects its fiscal deficit to narrow to KSh862.5billion, which is 6.2 per cent of the country’s Gross Domestic Product (GDP) in the current fiscal year.
As part of its medium-term fiscal deficit policy, the National Treasury seeks to reduce the fiscal deficit to Ksh 634million in the 2025/26 fiscal year.
“The fiscal deficit will be financed through net external financing of Ksh 280.7 billion equivalent to 2.0 per cent of GDP and net domestic financing of Ksh 581.7 billion equivalent to 4.2 per cent of GDP,” Finance Minister Ukur Yatani said.
