National Treasury and Planning/Statement of Actual Revenues & Net Expenditure Issues, Kenya Gazette No. 133, Notice No. 5892 (download at http://kenyalaw.org/kenya_gazette/ see pages 18/2654 to 21/2,657.
Statement of Actual Revenues and Net Exchequer Issues as at 31st May 2021.
The tax revenue is Kshs. 1.313 Trillion compared to the Kshs. 1.607 Trillion last Financial Year. This shows a drop in the revenue growth and it is attributed to the decision at the onset of the lockdown to reduce the VAT from 16 percent to 14 percent and also the PAYE scale reduction. Such measures were meant to cushion the Kenyans, however, they made the tax revenues go down. (My opinion is that the VAT should have been effected for essential goods and not all goods.)
IMF, World Bank and the KRA
As I go through the National Treasury and Planning Statement of Actual Revenues and Net Exchequer Issues, I am also factoring in the aspect that such figures are generated after both consultations and interventions from IMF and World Bank. The only one that can be stated accurately is tax revenues by KRA.
It is also notable that the opening balance is indicated as 48.029 Billion while 21.363 Billion is held in IMP Rapid Credit Facility and thus means the cash is not in Treasury’s account therefore the opening balance is considerably lower when we consider what Kenya can do with that figure.
Kenya May Need Another Loan
With deficits in the total revenue, whereby the original estimates were Kshs. 2.830 Trillion then the revised estimates are Kshs. 2.943 Trillion but the Actual Receipts are Kshs. 2.358 Trillion; this means that some functions the government may have planned for during budgeting might not be completed unless we get another loan to cover the balance.
Government Has Spent Nearly All Its Revenue
From the figures, the Total Issues to National Government is Kshs. 2.092 Trillion, while the Total Revenue collected is Kshs. 2.358 Trillion. This means the government has spent almost all its total revenue just on recurrent exchequer issues, CFS exchequer issues, and development exchequer issues.
Can Companies Survive the Pandemic?
When I add the total issues to the County governments the total cash released by Treasury is Kshs. 2.356 Trillion while Total revenue is Kshs. 2.358 Trillion. This leaves the government with 0.002 Trillion, the actual figure is 2.395 Billion. Considering the Covid pandemic is still hitting our economy hard, the economic recovery now depends on whether companies will survive the pandemic.