Central Bank of Kenya or Ministry of Finance reports

Kenya's April 2024 Tax Revenue Rises 17.1% to KES 210.7B Amid IMF Stalemate and Finance Bill Controversies

May 20, 2024, 03:57 AM

Kenya's tax revenue collections for April 2024 increased by 17.1% year-over-year to KES 210.7 billion. For the period from July 2023 to April 2024, tax revenue collections rose by 11% year-over-year to KES 1.75 trillion. Additionally, the month-on-month tax revenue for April 2024 saw a significant rise of 30.8% to KES 210.7 billion. Domestic borrowing increased by 42.3% to KES 82.8 billion, while external financing decreased by 57.6% to KES 13.9 billion. Total revenue for April 2024 was up 31.8% to KES 337.0 billion. The IMF is stalling on providing funds to the Kenyan government due to unmet revenue targets, leading to heavy taxes and stringent measures in the Finance Bill 2024. The Kenya Bankers Association has urged Parliament to reconsider the proposed 16% VAT on financial transactions in the Finance Bill, and Kenyan insurers are opposing the proposed motor vehicle circulation tax. The Chamber of Commerce has raised concerns over a Ksh.2 million eTIMS penalty proposed in the Finance Bill. The National Assembly Finance Committee chairman, Kuria Kimani, is under scrutiny amid new tax proposals. The heavy tax measures are partly due to Kenya's domestic debt interest consuming nearly half of the collected revenue.