The Kenya Revenue Authority (KRA) has exceeded its revenue collection target for the 2024/25 financial year, bringing in a total of Ksh 2.571 trillion against a goal of Ksh 2.555 trillion. This marks a performance rate of 100.6 percent and reflects a 6.8 percent increase compared to the Ksh 2.407 trillion collected in the previous fiscal year. According to data released by the authority, the strongest gains were recorded in agency and customs revenue streams, despite a turbulent first half of the year marked by delayed tax reforms, high interest rates, global tariff tensions, and international conflicts. KRA Commissioner General Humphrey Wattanga said the growth demonstrates resilience in the face of fiscal pressure and policy uncertainty, particularly following the shelving of the Finance Bill 2024.
Exchequer revenue grew by 4.5 percent to reach Ksh 2.32 trillion, up from Ksh 2.22 trillion in the previous period, while agency revenue surged by 119.5 percent to Ksh 248.28 billion, far exceeding the Ksh 40.47 billion target. Domestic revenue collections stood at Ksh 1.69 trillion, achieving a 98.1 percent performance rate against the Ksh 1.72 trillion goal. Customs revenue posted one of the strongest showings, collecting Ksh 879.33 billion against a target of Ksh 830.37 billion, a growth of 11.1 percent over FY2023/24.
Domestic value-added tax (VAT) rose by 4.2 percent to Ksh 327.336 billion, aided by VAT compliance initiatives rolled out in the second half of the fiscal year. These measures included tighter VAT registration procedures and improved declaration verifications, which together contributed Ksh 178.962 billion. Excise tax from betting services surpassed expectations, collecting Ksh 13.233 billion against a target of Ksh 11.288 billion, achieving a 117.2 percent performance rate. Pay-As-You-Earn (PAYE) taxes increased by 3.3 percent to Ksh 560.963 billion, while corporation tax grew by 9.9 percent to Ksh 304.833 billion, just shy of its Ksh 321.08 billion target. Sectors that supported this performance include ICT, manufacturing, real estate, financial services, wholesale, and retail. Domestic excise tax posted a 97.2 percent performance rate, with collections amounting to Ksh 69.385 billion.
Despite a challenging macroeconomic environment, the authority’s robust performance signals renewed confidence in its ability to meet future fiscal targets and support government spending priorities.
Written By Ian Maleve
