Analyis of Kenya S Government Revenue

ANALYSIS OF KENYA’S GOVERNMENT REVENUE
From the analysis Taxes seem to be the major source of revenue to the government since in the year 2006/7 it accounted for 93.16% of the total revenue, in the year 2007/8 it accounted for 94.91% of total revenue and in the year 2008/9 it amounted 94.71%. This is a good sign since the tax revenue/total government revenue is ideally required to be above 50%.
The following classes of taxes were the major sources of revenue for the government:
• Taxes on income, profit and capital gains
• Taxes on property
• Taxes from V.A.T
• Taxes on other goods and services
• Taxes on international trade transactions
• Other taxes not elsewhere classified
Non tax sources of government revenue:
• Social security contributions
• Property income
• Sale of goods and services
• Fines, penalties and forfeitures
• Repayment from domestic lending
• Other receipts not elsewhere classified
ANALYSIS OF GOVERNMENT REVENUE
An analysis of each type of revenue as a percentage of total government revenue is summarized in the table below.

Central Government Gross Receipts Percentage to Total Revenue 2006/7 2007/8 2008/9
Taxes on income profits and capital gains 35.14 37.27 37.60
Taxes on property 6.80% 6.81% 6.81%
Taxes from VAT 25.94 25.96 25.96
Taxes on other goods and services 20.46 20.05 20.03
Taxes on use of goods and on permission to use the goods or to perform services and activities 0.30 0.73 0.58
Taxes on international Trade transactions 10.84 10.60 10.09
Other taxes not elsewhere classified 0.74 0.97 0.97
Total tax revenue 93.16 94.91 94.71
Social Security contributions 0.00 0.23 0.21
Property Income 1.98 0.98 1.56
Sale of goods and services 2.59 2.00 2.11
Fines, Penalties and Forfeitures 0.10 0.03 0.03
Repayments from domestic lending and non lending 0.18 0.14 0.13
Other receipts not elsewhere classified 1.99 1.71 1.25
Total non Tax revenue 6.84 5.09 5.29

Both tax and non-tax revenues increased notably