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After appointing Anthony Mwaura as the (Executive) Chairman at KRA board, the serial tenderprenuer went there, frustrated Commissioner General Githii Mburu with his staff.
Eventually Githii Mburu was shoved out and most of his trusted personnel at KRA who had worked hard to raise tax collections last year to ksh.2.2T demoted.
From that point, everything went South.
KRA has been missing monthly tax collections by huge margin.
In February, KRA missed it’s monthly tax collection by 44%. The agency collected just 56% of the taxes it had targeted to collect that month.
Last month, march, KRA missed it’s monthly tax collection by ksh.67B, collecting less than ksh.130B.
When Uhuru Kenyatta left office, KRA was collecting between ksh.5B and ksh 5.5B daily, translating to between ksh.150B and ksh.175B monthly.
Now, inspite of the government increasing taxes on goods and services and various charges like power and water tariffs , monthly tax collections are falling in shocking levels.
No wonder the government has no money to pay salaries this month.
We warned Kenyans against voting for a clueless duo whosw campaign was oiled by tax evaders, wash wash criminals and loóters of public resources, but they didn’t hear.
Next, Kenya might even default on its Loan repayments.
The main reason why investors are not bidding for Treasury bonds is because tax collections are falling.
In the first eight months of FY 2022/23, KRA had collected a measly ksh.1.2T, meaning the authority is going to miss it’s target this year by a wide margin. Infact, this financial year, tax collections will be less than ksh.2T.
If Githii Mburu was given the space and independence to work at KRA similar to the one that Uhuru Kenyatta had given him, tax collections would have hit ksh.2.5T by June this year.
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