The government is betting on the Kenya Revenue Authority (KRA) to collect Sh3trillion by the end of the year to fund the country’s development budget.
Speaking during a meeting in Karen, Deputy President Rigathi Gachagua noted that the executive held a 7-hour meeting with KRA on Tuesday night where they discussed ways to increase revenue collection.
“Last night we sat with KRA till midnight to agree on how we collect more revenue to be able to fund our current development budget,” said Gachagua.
Gachagua noted that this is necessary given that the funds in the Treasury are being used to pay salaries and service public debts meaning the government is having trouble raising money to support government programs.
“In the fullness of time, we will turn around the economy of this country, first and foremost in the first two years God willingly, to return Kenya where President Mwai Kibaki left us and progressively turn around the economy to improve the quality of lives,” DP Gachagua said.
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Gachagua reiterated that the William Ruto-led government inherited a dilapidated economy. “We have inherited a dilapidated economy and we have work to do to turn around the economy of this country. We will be calling upon all of you to bear with us because it is not easy,” he said.
Although it remained unclear whether the Sh3 trillion target covers the entire financial year ending June 30, 2023, cumulative tax receipts in the first two months of the 2022/23 fiscal year stand at Sh280.2 billion compared to Sh247.8 billion in the previous fiscal year.
KRA had projected to collect a total of Sh2.072 trillion by the end of the fiscal year ending June 30 2023. The Kenya Kwanza government has been under pressure to mitigate the biting effects of the rising cost of living after dropping spiraling subsidies on fuel which it has maintained are unsustainable given the country’s debt situation.
During the 2022 campaign season, President William Ruto promised to bring down the cost of living within his first 100 days in office.
SOURCE: Capital business
