Categories: Business

KRA Exceeds Revenue Target Amid Hospitality Sector Rebound

The Kenya Revenue Authority (KRA) has revealed that it collected Sh49.06 billion ($453 million) in customs duties in the 2022/2023 financial year, surpassing the target of Sh46.99 billion ($433 million).

The 10.12% year-on-year increase was largely credited to a rebound in the hospitality sector and higher cargo volumes at Jomo Kenyatta International Airport (JKIA). The KRA collected Sh5.39 billion from air navigation service charges, 112% of the Sh4.81 billion target, representing a 31.9% growth.

Air passenger service charges also rose significantly, recording a 53.3% increase with collections of Sh11.57 billion, 114% of the Sh8.04 billion target. These numbers were boosted by a surge in air passenger traffic from 6.7 million in 2021 to 10.2 million in 2022, marking a rise in both international and domestic passengers by 80.4% and 32.1% respectively.

The KRA has attributed its successful revenue performance to various initiatives for the efficient processing of passengers and cargo clearance, such as the installation of baggage and cargo scanners, and an automated risk management module in its iCMS system. These improvements have drastically reduced congestion at entry points and streamlined cargo clearance.

Clarence Biama

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