William Ruto's Govt Collects Over KSh 1.5t Tax In 9 Months Following Finance Act 2023 Measures

• President William Ruto's administration introduced measures in the Finance Act 2023 to increase tax revenue in the fiscal year 2023/2024
• The Controller of Budget (CoB) quarterly budget review report showed that the government collected over KSh 1.5 trillion tax in nine months to March 2024
• This represented 57% of the total revenue collected during the period, which amounts to KSh 2.7 trillion.

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Kenya Revenue Authority (KRA) has collected more tax in the first nine months to March 2024.

According to the Controller of Budget (CoB) quarterly budget review report for the financial year 2023/24, the government netted KSh 1.54 trillion in tax revenue.

How much revenue has Ruto's govt collected?

This represented a 57% proportion of the total revenue collected during the period.

The President William Ruto-led administration collected KSh 2.7 trillion into the consolidated fund.

"This represented 63.2% of the revised annual target (KSh 4.3 trillion), compared to KSh 2.09 trillion (57.9% of the revised annual target) recorded in a similar period of FY 2022/23," read the report in part.

The report showed that tax revenue grew 62% of the target of KSh 2.50 trillion, compared to 66% (KSh 1.39 trillion) reported during a similar period last year.

What raised Ruto's tax revenue?

CoB Margaret Nyakang'o attributed the 10% growth in tax revenue to various factors, including implementing the Finance Act 2023 and the actualisation of tax administration strategies.

Ruto's government introduced new tax measures in the Finance Act 2023, including the 1.5% Affordable Housing Levy.

The government collected KSh 34 billion from the scheme as of April 2024.

Where else did Ruto's govt raise revenue?

The CoB report further showed that non-tax revenue contributed 2% (KSh 52.01 billion), domestic borrowing at 22% (KSh 603.82 billion), and external loans and grants at 19% (KSh 506.92 billion).

"During the first nine months of FY 2023/24, receipts into the consolidated fund increased significantly by 29%, amounting to KSh 611.95 billion, compared to a similar period in FY 2022/23.

"Additionally, domestic borrowing has increased by Kshs.207.50 billion (52%), and external loans and grants have risen by KSh 271.44 billion (115%)," read the report in part.

KRA tax targets

Ruto tasked KRA to collect KSh 2.62 trillion in tax revenue for the current fiscal year.

This followed the government's plans to collect KSh 2.95 trillion in taxes in the fiscal year 2024/25, relying on proposed extensive tax measures.

KRA fell short of its target by KSh 186.2 billion for the first six months of the 2023/2024 financial year, with the largest contributions to this shortfall coming from income taxes.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke