Kenya tax revenue up 11% in 2018/19, short of government target
NAIROBI, Aug 14 (Reuters) - Kenya's government revenues grew
11% in the 2018/19 (July-June) fiscal year, the tax authority
said on Wednesday, but this fell short of the target set for the
The Kenya Revenue Authority said in a statement its
collections grew to 1.58 trillion shillings ($15.32 billion)
during the year to end-June, up from 1.435 trillion shillings in
The government had a projected revenue target of 1.643
billion shillings for 2018/19.
The authority gave no reason for the shortfall, but the
government is struggling to raise tax revenues to fund its
Kenya is one of the fastest-growing countries in Africa, but
its economy is often hit by drought. Violence after a December
2007 presidential election and disputes over the following two
polls led some investors to scale back investment, hurting
Missed revenue targets, rising public debt and uncontrolled
expenditure have also emerged as concerns for investors in
The Kenya National Bureau of Statistics said in end-June the
economy grew 5.6% year-on-year in the first quarter from 6.5% in
the same quarter last year, due to dry weather which curbed the
The government forecasts that the economy will expand by
6.3% in 2019, the same rate as a year earlier.
The tax authority said it is required to collect 1.938
trillion shillings in 2019/20.
The finance ministry set a budget deficit of 5.6% of GDP in
June for the 2019/20 (July-June) fiscal year, targeting to
borrow 324 billion shillings or close to half of the shortfall,
from external sources.
The revenue authority has also had its own challenges. In
May, 75 of its staff were arrested on suspicion of abetting tax
evasion and bribery.
($1 = 103.1500 Kenyan shillings)
(Reporting by John Ndiso;
Editing by Stephen Powell)
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