The Kenya Revenue Authority (KRA) has reportedly collected KSh166 billion revenue in December 2020, which pointed to excess in revenue collection by KSh 2 billion.

The revenue collection signified 3.5% higher than the KSh160 billion collected in the corresponding period in 2019, according to a statement on KRA’s website.

This is the first time since the onset of the Covid-19 pandemic that the agency surpassed its revenue collection target. The government agency attributed the increased revenue collection to enhanced economic conditions since the easing of covid-19 restrictions. Efforts by the agency to increase tax compliance also contributed to improved revenue collection.

KRA’s Customs & Border Control (C&BC) Department collected the highest ever monthly revenue collection of Ksh 60.777 billion in December, representing a 40.9% growth in the revenue collected from the same period in 2019.

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Governments efforts to lower exemptions and remissions also yielded results as the tax exemptions and remissions in the customs department fell by 39.3% in December 2020, thereby boosting revenue collection by KSh3.34 billion.

Domestic Taxes had the best performance rate of 91.1% in December, since the onset of Covid-19 in Kenya in March 2020. KRA says that Pay As You Earn (PAYE) taxes hit 99.8% of the set target while Withholding Tax exceeded the target by Ksh 725 million. Corporate taxes also reached 93.5% of the set target.

The Revenue Authority is optimistic that the recovering economy and efforts to increase tax compliance will boost tax revenue collection in 2021. In addition, the introduction of the digital services tax, minimum alternative tax, and voluntary disclosure program will boost KRA’s revenue collection goals.