The Kenya Revenue Authority (KRA) has hit the two trillion mark after collecting Ksh2.112 trillion as of April 30, 2025.
KRA in a statement on Thursday, May 8, said that the collection reflects a performance rate of 96.5% against the target of Ksh2.189 trillion.
According to the authority, revenue collection registered a growth of 6.1% during the period, reflecting an upward trajectory in collection compared to Ksh1.990 trillion realised in the same period during the previous 2023/2024 financial year.
In the period under review, domestic taxes amounted to Ksh1.386 trillion between July – April 2024/25, translating to a revenue growth of 4.7% over Ksh1.323 trillion realised in July – April 2023/24.
Customs revenue collection also grew by 9.1% after registering a cumulative collection of Ksh722.743 billion, compared to Ksh662.447 billion that was collected in the same period of FY 2023/24.
Agency revenue (collected on behalf of other Government entities) collection amounted to Ksh205- 518 billion, registering a performance rate of 111.8% against a target of Ksh183.789 billion.
This represents a growth of 37.1% compared to the collection of Ksh149.876 billion realised in the same period of the previous financial year (2023/2024).
Also Read: Pakistan, Congo & Other Regions Ruto is Erecting Ksh2.3 Billion Infrastructure
KRA reveals exchequer revenue collected
On the other hand, exchequer revenue (collected on behalf of the National Treasury) amounted to Ksh1.906 Trillion, reflecting a performance rate of 95.0% against a target of Ksh2.006 trillion.
This represents a growth of 3.6% compared to the collection of Ksh1.840 trillion that was collected in the same period in the previous financial year (2023/2024).
“In spite of the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection. The various indicators that influence revenue performance have generally moved contrary to expectations, affecting revenue mobilisation,” said KRA.
“GDP grew at a slower pace of 4.0% in Q3 2024, compared to 6.0% in Q3 2023. Similarly, the Purchasing Managers Index (PMI) averaged at 49.8 between July 2024 and April 2025, indicating a slowdown in private sector activities. This subdued demand was further evidenced by a 1.6% drop in import values, an important indicator of domestic demand for both raw materials and consumer goods.”
The authority further highlighted the recent policy change, which has allowed taxpayers to offset their current tax liabilities using adjustment vouchers, such as refund and overpayment adjustment vouchers.
KRA said that a number of taxpayers utilised Ksh53.8 billion in adjustment vouchers accrued from previous periods to offset current tax liabilities, reducing effective collections.
Moreover, the reclassification of SHIF and the Housing Levy from tax reliefs to allowable deductions before tax computation has lowered the Pay-As-You-Earn (PAYE) tax base.
Compliance enhancement
Despite revenue mobilisation being impeded by impacts from the above factors, KRA said that enhanced its compliance through various initiatives.
“For example, the implementation of a Centralised Release Office has significantly improved the efficiency of cargo clearance processes. This reform has positively impacted Customs revenue performance, with revenue growth increasing from an average of 7.0% as of the end of January 2025 to 22.6% in March and 14.4% in April 2025,” the authority said.
“Additionally, the initiative has contributed to enhanced import values, resulting in an increase in average daily non-oil revenue from Ksh2.087 billion during the period July to February 2024/25, to Ksh2.309 billion in March and April 2025.”
Also Read: KRA Sets Deadline for Fuel Stations to Join eTIMS for Tracking
The Tax Amnesty Programme has also seen strong uptake, generating Ksh13.5 billion in revenue between December 2024 and April 2025.
In addition, the enhanced Dispute Resolution Framework has expedited the resolution of tax-related disputes, allowing for quicker recovery of revenue previously tied up in legal processes.
As a result, Ksh21.9 billion was released for collection during the period from January to March 2025.
KRA has maintained that it targets to collect 2.668 trillion by the end of the Financial Year 2024/2025.
Follow our WhatsApp Channel and X Account for real-time news updates.
