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Kenya raised KES 673.6 Billion Shillings in tax revenue in the 6-months ending in December. The tax revenue target for FY 20/21 is 1.568 Trillion Shillings, remember. Achieving only 42% at the half-way point, in the middle of a pandemic, bodes ill.
Certainly implies we're looking at another insane deficit in FY 21.
In a nutshell, the revenue side looked like this from July-December 2020:
Tax Revenue: KES 673.605 Billion
Domestic Borrowing: KES 385.756 Billion
Non-Tax Revenue: KES 52.9 Billion
External Loans & Grants: KES 39.776 Billion
Tax Revenue: KES 673.605 Billion
Domestic Borrowing: KES 385.756 Billion
Non-Tax Revenue: KES 52.9 Billion
External Loans & Grants: KES 39.776 Billion
Another interesting data point from the Treasury, against the KES 673.6 Billion tax figure.
We spent KES 413.508 Billion on debt service in the last half of 2020. That’s about 45% of the full year target.
We spent KES 413.508 Billion on debt service in the last half of 2020. That’s about 45% of the full year target.
Another KES 491.2 Billion shillings still needs to be found to service debt due between Jan-June 2021.
We’re going to have one hell of a deficit in FY 21. The trajectory our public finances are on, are nowhere near sustainable.
