The Kenya Revenue Authority (KRA) recorded a tax collection boom in the second quarter of 2012, with a 14% growth in revenue, mainly from domestic taxes.
Kenya netted US$2.35 billion worth of taxes during the period, compared to US$2 billion collected during the same period in 2011.
Despite the boom, the amount collected was far from KRA’s full year target of US$10.2 billion. KRA collected US$8.2 billion in 2011.
KRA Commissioner General John Njiraini said in a statement posted on the Authority’s website Tuesday that the tax collection body was on course to meet targets in the third quarter of 2012 due to its efforts to improve customs management.
Most of the government’s customs revenue dropped due to an apparent slowdown in domestic imports.
“We are confident that our continuing intervention to improve customs performance will result into better results,” Njiraini said.
Kenya’s annual budget currently stands above US$13 billion, which is putting pressure on the revenue collection body to increase its earnings.
The government recently announced measures, including raising the percentage of KRA earnings, to enable it collect more taxes.