A reduction in headcount has pushed down pay-as-you-earn (PAYE) tax, putting the Treasury finances in a precarious position in the first half of fiscal year 2019/20.
As a result of the low collection, cumulative ordinary (mainly tax) revenue underperformed the target by Sh138.7 billion in the half-year period to December. The other poor performers were excise tax and value-added tax (VAT), which are directly connected to business activity.
