The Kenya Revenue Authority is expected to come under renewed pressure to increase collection after Treasury reviewed upwards the 2019/2020 budget estimates.

Treasury has written to Parliament seeking to increase budgetary allocation by 86 billion shillings to cater for new development expenditure.

Treasury wants to increase spending to 3.13 trillion shillings in the fiscal year 2019/20.

However, acting Treasury Cabinet Secretary Ukur Yattani says the new tax measures contained in the Finance Act 2019 and renewed efforts to deal with tax evasion will help the tax agency meet its collection target.

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In the 2018/19 fiscal year, KRA increased collection to 1.58 trillion shillings up from 1.435 trillion shillings in 2017/2018.

A budget review document sent to parliament yesterday says internal revenues from items such as fines, payments for passports and marriage fees was below target by 24.4 billion shillings.


Projects to benefit from the budget increase include the Standard Gauge Railway, roads, power plants and electricity transmission as well as projects under the Big Four agenda.

The development vote and the county governments are expected to be the beneficiaries of the budget increase, both getting 85.7 and 6.5 billion shillings respectively.

Recurrent expenditure has also been slashed by 5.6 billion shillings which is a 0.5 percent reduction. SGR will be allocated 16.7 billion shillings for maintenance and payment of management fees to the Chinese firm operating the passenger and cargo business on the track.

The construction of the Nairobi expressway will get 7.3 billion shillings. The budget committee of parliament is expected to debate the review before tabling its report in Parliament next month.






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