Kenya Revenue Authority (KRA) posted a record Sh82.55 billion in customs revenue in January 2025, surpassing its target by 121.1% a performance driven by new excise duties on imported alcohol and sugar, which boosted non-oil taxes by 11.6%.
The increase was complemented by reforms like reduced tax waivers on sugar, rice, and cooking oil, which fell by 37.4%, and the launch of a new Centralised Release Operations system that enhanced collection efficiency.
Customs collections for FY 2024/25 hit Ksh 879.33 billion, achieving an 11.1% growth over the previous year and averaging Sh3.5 billion daily Non-petroleum taxes edged up 10.3% to Sh541.05 billion, while petroleum tax revenues rose 12.5% to Sh338.28 billion.
Analysts say the results validate reliance on targeted excise tax reforms and improved systems to enhance revenue without raising headline tax rates.
They caution, however, that long-term success depends on sustained compliance, transparency, and stable macroeconomic conditions.
Written By Ian Maleve
