KRA headquarters at Times Towers in Nairobi. Photo/SALATON NJAU
Kenya Revenue Authority (KRA) collected Sh77.2 billion in April, exceeding average monthly tax realised in the first 10 months of the year by Sh22.2 billion.
Tax experts attributed the increase to final instalment tax payments by companies.
Data released by the Treasury showed that total revenues collected by the taxman have risen to Sh588 billion in the ten months since beginning of the financial year. In the 10 months, tax revenues have averaged Sh55 billion.
“April is a key month because all companies which close their books have to make final their final payments; that will include all banks and insurance companies,” said Nikhil Hira, a tax partner at Deloitte and Touche.
Treasury has given KRA a target of Sh817 billion for the full year, but owing to economic slowdown, the taxman is expected to raise an estimated Sh723 billion.
Mr Hira said tax performance in the month of May was not expected to be as impressive but it could pick in June when most companies are expected to pay the second instalment of their estimated tax liability.
CBK data shows that the corporate tax liability of the banking industry rose by Sh10 billion last year to Sh35.6 billion.
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