This archive report was first published on 23 June 2021.
According to data published in the Kenya Gazette on June 23, 2021, Kenya's tax income for the first 11 months of the fiscal year 2020/2021 fell by 1.3% to KSh1.313 trillion compared to KSh1.329 trillion collected in the same period last year.
The decline in tax revenue comes despite the government's efforts to increase tax revenue by expanding the tax base and introducing new taxes such as the digital tax and minimum tax.
Notably, tax revenue dropped to KSh123 billion in May, marking the first month-on-month decline this year, down from KSh153 billion collected in April.
Experts attribute the dip in tax revenue to a decline in corporate earnings and weak economic activity in the past year.
Domestic borrowing stood at KSh770.6 billion as of May 31, 2021, below the government's estimates of KSh853.8 billion.
External loans and grants amounted to KSh124.4 billion, a sharp drop from the KSh214.8 billion collected in the same period last year.
As part of its efforts to support economic recovery, the government signed an agreement with the International Monetary Fund (IMF) in March, which included a loan of $2.4 billion to support economic recovery.
