Written By Lisa Murimi

Kenyans may have to brace for increased taxes as the Kenya Revenue Authority (KRA) grapples with a significant revenue shortfall. 

By November, KRA had collected Sh857 billion, only 34.6% of its Sh2.47 trillion target for the fiscal year, leaving a gap of Sh 174 billion, Treasury data reveals.

To meet its annual goal, the tax authority must now raise Sh1.6 trillion over the next seven months—nearly double what it collected between July and November. 

This daunting task is compounded by slowing economic activity and constrained tax revenue streams.

Key tax categories have underperformed, disrupting government operations. By the first quarter, KRA collected Sh590.9 billion, falling short of its Sh605.5 billion target. 

The largest gaps were in VAT (Sh15.1 billion), excise duty (Sh5.6 billion), and import duty (Sh2.8 billion).

The weak revenue performance has delayed funding to counties and ministries, affecting essential services, salary payments, and project rollouts. 

KRA attributed the challenges to low domestic demand, economic stagnation, and declining import values.

With just seven months remaining, KRA is under immense pressure to close the gap. 

Failure to do so could force the government to increase taxes, adding financial strain on Kenyans already grappling with a tough economic environment.

The Energy and Petroleum Regulatory Authority (EPRA) has announced a significant crackdown on adulterated fuel in Kenya, revealing that eleven petroleum sites across the country were found to be selling non-compliant products.

This comes as part of a rigorous testing initiative aimed at ensuring the integrity of fuel supplies in the local market.

Between October and December 2024, EPRA conducted an impressive 5,970 tests at 1,295 petroleum locations. Out of these, a staggering 99.15% were deemed compliant, but the eleven sites (0.85%) flagged for non-compliance have raised serious concerns. The nature of the violations included selling diesel with excessive sulfur content, distributing diesel intended for export, and offering Super Petrol adulterated with kerosene.

In response to these findings, EPRA has acted decisively. Six stations have been closed, four paid penalties, while one case is pending in court.

The authority has reiterated its commitment to monitoring the quality of petroleum products, as mandated under Section 92 of the Petroleum Act 2019, to mitigate fuel adulteration and prevent the dumping of export-bound fuels in the local market.

To bolster enforcement efforts, EPRA has established multiple channels for the public to report suspected breaches.

Individuals can contact their hotline at 0709 366 000, utilize the USSD code (*363#), or send messages via the SMS service code (40850).

This proactive measure aims to enhance compliance and safeguard consumers against unsafe fuel products.

This crackdown follows a similar initiative in September 2024 when EPRA closed down 14 petrol stations and fined three others for selling adulterated fuel, highlighting the ongoing challenges in the country’s fuel distribution network.

As regulatory pressure intensifies, consumers are urged to remain vigilant and report any suspicious activities at petrol stations.