Kenya Revenue Authority (KRA) recorded a record Sh82.55 billion in customs collections in January 2025 exceeding its target by Sh8.12 billion and achieving 110.9% performance on the month’s Sh74.44 billion goal.
This surge was driven by new excise tax rates on imported alcohol and sugar, which buoyed non-petroleum taxes by 11.6%, while petroleum-related taxes jumped 55.9%, supported by a 6.6% rise in oil volumes.
Customs reforms including the rollout of a Centralised Release Operations system improved collection efficiency and clogged revenue leakages.
The January haul marks the highest ever monthly customs revenue, delivering a robust start to the second half of FY 2024/25 and signaling strong fiscal momentum.
Analysts say the success validates the new alcohol and sugar tax formula as a powerful tool for enhancing revenue without over-relying on borrowing though they caution long-term sustainability will depend on continued compliance and economic stability.
Written By Ian Maleve
