The Treasury in the last financial year collected Sh24.6 billion from State agencies and regulators against a target of Sh36.7 billion.
The Treasury blamed much of the shortfall on lower remittance by the Central Bank of Kenya (CBK), one of its largest contributors, which was expected to deliver Sh5.8 billion but only managed Sh800 million.
CBK makes money from currency conversions, charging interest on loans to banks in terms of repurchase agreements and overdraft to the government.
The Treasury in the last financial year collected Sh24.6 billion from State agencies and regulators against a target of Sh36.7 billion.
The Treasury blamed much of the shortfall on lower remittance by the Central Bank of Kenya (CBK), one of its largest contributors, which was expected to deliver Sh5.8 billion but only managed Sh800 million.
CBK makes money from currency conversions, charging interest on loans to banks in terms of repurchase agreements and overdraft to the government.
“The shortfall is explained in part by the payment of Sh800 million by Central Bank of Kenya instead of the expected Sh5.8 billion,” acting Finance Cabinet Secretary Ukur Yatani said.
The government is in dire need of cash, which has seen the Treasury focus on regulators.
The Kenya Revenue Authority (KRA), which was given mandate to collect the money has threatened to prosecute 10 State agencies over Sh12 billion they failed to hand over last year.
The KRA collected Sh9.5 billion from nine regulatory authorities, leaving 10 in arrears.
“We are in the final stages of instituting recovery measures. This includes sanctions on non -remittance of surplus funds and enforcement measures by the KRA such as attaching Agency Notices and prosecution on non-compliant entities,” the KRA said.
The CBK, Communication Authority, Capital Markets Authority, Insurance Regulatory Authority, Retirement Benefits Authority, Energy and Petroleum Regulatory Authority, Public Procurement Oversight Authority, Kenya Bureau of Standards and National Construction Authority handed over Sh9.7 billion in 2018.
The nine regulators are expected to bring in Sh5.7 billion next year, according to the Treasury report.
Some of the regulators missing from the list include Agricultural and Food Authority, irrigations board, Tourism Regulatory Authority, Nema, sacco regulator, Competition Authority, Export Processing Zone Authority, Export Promotion Council, NTSA, the maritime authority, and the Kenya Copyright Board.
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