The Kenya Revenue Authority (KRA) has reported an increase in non-oil revenue after slashing import duty exemptions on key consumer goods.
In a statement released on July 17, the authority noted that import duty exemptions on sugar, rice, and cooking oil were reduced by 37.4%.
According to the taxman, the move is part of ongoing efforts to tighten controls on tax exemptions and raise domestic revenue without increasing tax rates.
Duty exemptions on sugar, rice, and cooking oil had previously created gaps in revenue collection, often abused by unscrupulous traders.
However, KRA indicated that it is working to close loopholes, enforce compliance, and reduce overreliance on borrowing.
Also Read: List of New Taxes Introduced by KRA Under Finance Act 2025
Road Maintenance Levy Earnings
Further, KRA noted that the Railway Development Levy (RDL) grew by 15.0% to Ksh36.820 billion, while the Road Maintenance Levy (RML) increased by 50.9% to reach Ksh119.662 billion.
The taxman explained that the increase in the Road Maintenance Levy (RML) was driven by an adjustment in the fuel levy rate from Ksh18 per litre to Ksh25 per litre.
The report further shows that oil volumes grew by 13%, especially in petrol, diesel, coal, and lubricants, adding to the rise in oil tax collections.
KRA’s report highlighted investment in digital infrastructure as key to enhancing tax compliance and reducing human interference in revenue collection.
Tools such as the Electronic Tax Invoice Management System (eTIMS) and iTax have been credited with improving transaction tracking and widening the tax net.
At the same time, KRA reported that it intercepted Ksh549 million worth of illicit goods in the 2023/2024 financial year. Among the seized items were 40,000 litres of smuggled ethanol, which is commonly used in manufacturing illicit brews.
Also Read: Mbadi Clarifies Fuel Price Hike and Alleged Ksh7 Additional Levy
KRA Explains Custom Revenue Collected
The authority’s Customs and Border Control (C&BC) Department recorded an 11.1% growth in revenue collection, up from 4.9% the previous year, collecting Ksh879.329 billion in the 2024/2025 financial year.
“This represents a performance rate of 105.9%, with an average daily collection of Ksh3.546 billion,” the report noted.
Non-oil taxes registered a 10.3% increase, bringing in Ksh541.053 billion, while oil-related taxes grew by 12.5%, contributing Ksh338.276 billion.
The increase is attributed to rising import volumes and a stronger enforcement regime.
Additionally, the third quarter recorded strong results, with customs revenue hitting a performance rate of 109.2%.
KRA noted that January 2025 was the best performing month, generating Kshs82.554 billion, the highest ever monthly collection, achieving 121.1% performance.
Further, import Duty grew by 18.3% to Kshs157.870 billion, with the agriculture and steel sectors leading. The sectors registered growth rates of 67% and 39% respectively.
Excise Duty also saw a rise of 11.6%, totaling Ksh125.300 billion.
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