Revenue data for the first two months of the current financial year shows that the Kenya Revenue Authority (KRA) may be lagging behind in realizing its annual target of achieving a 23% growth for the whole financial year. KRA has set a target of collecting KES 870.5 billion in taxes this year,  over last year’s KES 707.4 billion, which if realized will represent a 23% growth.

The revenues from tax have increased by 12.9% in July and August, the first two months of the financial year 2012/2013 which started in June 2012. This points to increased compliance by taxpayers as well as revamped efficiency by the Kenya revenue Authority (KRA). according to a Statement of Actual revenue & net Exchequer Issues August 2012 report by the Ministry of Finance, tax collections for July and August amounted to KES 94.8 billion, as compared to KES 83.9 billion in thesame period last year.

Nikhil Hira, a tax partner at Deloitte told the Business Daily that July and August are usually not good months especially when looking at consumer spending; it has not been that vibrant. These months are not good months for KRA since most companies have their financial years ending in June and December, thus their tax submission dates fall in October and August.