KRA Reports Economic Resurgence
The Kenya Revenue Authority (KRA) has commenced the calendar year 2021 on a high after recording an improved performance rate of 102.6 percent to surpass its January revenue collection target by Sh3.53 billion.
Despite the challenging economic environment, KRA collected Sh142 billion against a target of Sh138 billion representing 6.7 percent 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.
KRA Director-General Githii Mburu in a statement says the positive performance is widely accredited to the resurgence of the economy. According to the Quarterly Gross Domestic Product Report by the Kenya National Bureau of Statistics, the economy contracted by 1.1 percent in the third quarter of 2020 compared to a contraction of 5.5 percent in the second quarter of 2020. In addition, the relaxation of the stringent Covid-19 containment measures, the implementation of the Post Covid-19 Economic Recovery strategy 2020-2022 by the government, and the sustained implementation of enhanced compliance efforts by KRA in the month of January 2021 have continued to drive this performance.
In January, the Customs & Border Control (C&BC) Department continued with its excellent performance after collecting Sh54.919 billion reflecting a growth of 9.7 percent and registering a revenue surplus of Sh6.053 billion.
The customs revenue was achieved through a sustained daily average of non- oil revenue at Sh1.727 billion compared to Sh1.744 billion in December 2020, which was the highest ever daily average collection for customs revenue. Exemptions and remissions in Customs declined by 4.8 percent, positively impacting the revenue base by Sh283 million.