{UAH} Pojim/Ocen/Bobby/Allan/Gook/WBK: KRA misses its half-year revenue collection target by Sh68 billion

Dear All;

If the 1/2yr revenue collection is down by KES:68b (about USD:68m) even after a downward revision last year by the Treasury, couple this with a credit downgrade, and out of the KES10.00 revenue collected KES2.00 went to service interest alone in 2016/17 financial year; (@ 2013 was KES1.20) and with the new borrowing hiding a higher interest rate (to attract the lenders at the detriment of the  tax payer, plus "Punda amechoka" / "taxpayer is exhausted" add all these to that of 1st EUROBOND; honestly the economy is headed south! Even if one was to try and mitigate that the 2nd EUROBOND is not yet due, there still exists another sneaky borrowing that we shall know once 2017/18 books are audited!!!

On the 1st EUROBOND by end of this year, Kenya was estimated to start repaying back from revenue collection every KES10.00 about KES5.40 inclusive of interest. We can roughly deduct then that the principle is KES3.40 pointing at an interest rate of 37.03% there about!!! Main reason for tight-lips and opaqueness.

There exists nothing like frugality is either borrowing nor in expenditure! ZERO.

Edmund

KRA misses its half-year revenue collection target by Sh68 billion

KRA misses its half-year revenue collection target by Sh68 billion Otiato Guguyu The Government is finding it hard to balance its books after Kenya Revenue Authority (KRA) missed its half-year ...

The Government is finding it hard to balance its books after Kenya Revenue Authority (KRA) missed its half-year revenue collection target by Sh68.3 billion.

The taxman collected Sh656.9 billion against a target of Sh701.7 billion in the period between July and December 2017, according to the National Treasury's Post-election Economic and Fiscal report, meaning it was 6.8 per cent off-target.

ALSO READ: KRA board grants Njiraini more time

This represents a third of what the Government has been forced to borrow internationally.

Treasury had hoped the taxman would collect Sh1.499 trillion in the current fiscal year, which means that it will be difficult to bridge the gap for the remainder of the year.

Tell-tale signs that KRA was struggling started to manifest in the first four months of the fiscal year when the taxman missed the target by Sh40 billion.

Revised downwards

KRA blamed this on a drastic fall in customs duty after the Government allowed the importation of duty-free sugar, maize and milk to cushion consumers against a sharp rise in inflation.

Treasury Cabinet Secretary Henry Rotich then revised KRA's target downwards to Sh1.439 trillion and now the taxman has the daunting task of raising Sh783 billion by June.

When revenues fall short, the Government relies on grants and loans, with projections to spend Sh2.3 trillion. Revenues are expected to slow to Sh1.6 trillion, creating a Sh680 billion funding gaps.

ALSO READ: Send prisoners to plant trees, says MP

"The deficit, inclusive of grants, is therefore projected at Sh620.8 billion," said Treasury in its report.

Borrowing from the domestic market is projected at Sh293.8 billion, external borrowing at Sh323.2 billion and other domestic receipts at Sh3.8 billion.

Treasury has only borrowed Sh224 billion from the international market, including the recent Eurobond.

Read more at: https://www.standardmedia.co.ke/business/article/2001271396/taxman-misses-target-by-sh68b