This archive report was first published on 23 May 2020.
Kenya Revenue Authority (KRA) has defied the odds to collect Sh120 billion in taxes for the month of April, beating its monthly average and bringing the total tax collected to Sh1.24 trillion.
According to the latest Statement of Actual Revenue and Net Exchequer Issues from the Treasury for the month of April, the tax collection was a surprise given the muted economic activities due to the COVID-19 pandemic.
With companies paying their instalments and taxes for 2019 last month, the government raised its total tax collected to Sh1.24 trillion, an increase from Sh1.12 trillion that it managed in March.
Samuel Mwaura, a director in charge of tax at audit firm Grant Thornton, attributed the increase in tax collection to the fact that April is when all companies whose period year ends in December have to pay their tax instalments.
‘April is when all companies whose period year ends in December have to pay their tax instalments,’ said Mr Mwaura.
He added that this explains why Kenya, unlike other countries, did not cave in to pressure from firms to change the timelines for tax payment when the pandemic erupted.
‘Because they were relying on all the instalments and PAYE on directors’ fees, taxes for the year ending 2019 were all becoming payable in April,’ said Mr Mwaura.
He further stated that a dip in tax collection is expected beginning May, as the effect of the tax reliefs offered by the government will start being felt.
