Treasury nets extra Sh98bn from new tax steps


National Treasury Principal Secretary, Chris Kiptoo. FILE PHOTO | LUCY WANJIRU | NMG

The Treasury has collected an extra Sh98.2 billion in the seven months to January 2024, from the new tax measures.

Treasury Principal Secretary Chris Kiptoo told the National Assembly’s Budget and Appropriations Committee (BAC) that the tax measures outlined in the Finance Act, 2023 are expected to generate an additional Sh214 billion. “This accounts for a growth of 9.9 percent towards the realisation of the financial year 2023/24 overall target,” Dr Kiptoo said.

“In the period July 2023 to January 2024, Sh98.2 billion has been realised through implementation of the Finance Act, 2023.”

Dr Kiptoo said budget execution for the financial year 2023/24 has been hampered by challenges in raising resources.

By the end of January 2024 revenue collection amounted to Sh1.499 trillion and was below target by Sh195 billion mainly on account of ordinary revenues of Sh232.6 billion, he said.

“However, this revenue performance represented a growth of 14.4 percent compared to a growth of 9.8 percent in the same period in the financial year 2022/23,” Dr Kiptoo said.

Ordinary revenue for the period to January 2024, the PS said, was Sh1.257 trillion against a target of Sh1.49 trillion, revealing a shortfall of Sh232.6 billion.

He said all tax heads recorded below target collection from July 1, 2023 to January 31, 2024.

He said the Kenya Revenue Authority (KRA) collected Sh124.4 billion in income tax, excise taxes (Sh40.8 billion), Value Added Tax (Sh31.5 billion), import duty (Sh24 billion) and Sh11.8 billion in other revenue.

Dr Kiptoo said by the end of January 2024, the ministerial appropriations-in-aid (A-I-A) amounted to Sh242.2 billion against a target of Sh205 billion hence recording a surplus of Sh37.2 billion.

“The above target performance was on account of surplus recorded in both recurrent and development A-I-A,” Dr Kiptoo told BAC.

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