The Kenya Revenue Authority (KRA) collected Ksh1.243 trillion in taxes for the year 2024/2025 fiscal year as of 31st December 2024.
According to KRA, this is a registered performance rate of 95.7% against the target of Ksh 1.298 trillion.
KRA in a statement on Tuesday, January 28, said this reflects a growth of 4.5% compared to the Ksh 1.189 trillion collected in the same period of the previous financial year (2023/2024).
Exchequer revenue (collected on behalf of The National Treasury) collection amounted to Ksh1.120 trillion, registering a performance rate of 93.6% against a target of Ksh 1.197 trillion.
Agency revenue (collected on behalf of other Government entities) collection amounted to Ksh 122.872 billion, registering a performance rate of 121.3% against a target of Ksh 101.316 billion.
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However, in spite of the progressive growth, the authority stated that the collection was affected by various economic indicators that directly drive revenue collection.
“For instance, GDP growth slowed to 4.0% in third quarter 2024, down from 6.1% in third quarter 2023, and 4.6% in second quarter 2024,” KRA said.
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The revenue collector mentioned that low domestic demand was experienced as indicated by the Purchasing Managers Index (PMI) that averaged at 49.2 points in July December 2024 indicating a contraction in the economic activities.
“This is also indicative from the decline in overall import values of goods by 0.6% in the six months of 2024/25, which is a main source of both raw materials and final consumer goods,” read the statement in parts.
KRA said the government being a key consumer of VAT able goods applied austerity expenditure measures that negatively affects various key sectors over time.
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Custom Revenue and Domestic Taxes Record Increase
Between July and December 2024, Customs revenue collection totaled Ksh 429.127 billion, reflecting a 4.8% growth compared to Ksh 409.548 billion during the same period in FY 2023/24.
Similarly, domestic taxes reached Ksh 811.847 billion, marking a 4.4% increase from Ksh 777.617 billion collected in the corresponding period of the previous year.
The Kenya Revenue Authority (KRA) has set an ambitious target of Ksh 2.684 trillion in tax collections by the close of the Financial Year 2024/2025.
“KRA is confident that it will continue with the upward trajectory and achieve the set target to enable the government to sustain the country’s economy,” the authority noted.
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