Times Tower, the building that houses KRA. IMAGE/ COURTESY

The Kenya Revenue Authority (KRA) missed its target in revenue collection by Ksh92.7 billion, collecting a total of Ksh329 billion in the first quarter of 2018/19 financial year.

The authority was targeting to collect  over Ksh420 billion in the quarter. In the same period last year, the tax man collected Ksh317.4 billion. This means that KRA increased its revenue collection by Ksh11.6 billion as compared to the same period last year

Annually, KRA collected 1.48 trillion in the year ending June 2018 against a target of Sh1.65 trillion. The shortfall was attributed to tough macroeconomic environment brought about by protracted election period in first half of the year.

This year, KRA targets a revenue collection of Ksh1.673 trillion but may miss the target by over Ksh373 billion if last year’s trend repeats itself.

In the quarter under review, the country manged to pay Ksh154 billion to external debts, translating to Ksh616 billion for the year against a target of Ksh870 billion.

So far, only Ksh22 billion has been disbursed to development during the quarter, translating to Ksh88 billion annually against budgetary target of Ksh411 billion.

Read: Eurobond 3: Kenya Set To Borrow Ksh287 Billion By The End Of 2018

Economist David Ndii, in a tweet, predicts that nothing much is expected to accelerate revenue collection.

Recently, Treasury PS Kamau Thuge hinted that Kenya is set to borrow up to $2.8 billion (Ksh287 billion) in Eurobond offers and syndicated loans this year alone, to finance the 2018/2019 budget.

This will further burden the taxpayers, as a big chunk of the revenue collected will go towards repaying foreign debts.

Currently, Kenya has a total public debt of Ksh5 trillion, and it is estimated that by the end of President Uhuru Kenyatta’s term in 2022 Kenya will owe debtors Ksh7 trillion.

Do you have a story you want told? Do you know of a sensitive story you would like us to get our hands on? Email your news TIPS to [email protected] Also WhatsApp 0708677607 with your news tips