The Kenya Revenue Authority (KRA) has exceeded its revenue collection target for the 2024/2025 financial year, raking in Ksh.2.571 trillion, surpassing the target by Ksh.16 billion, a 6.8% increase from the Ksh.2.407 trillion collected in the previous fiscal year.
Despite a challenging economic environment marked by high lending rates, global geopolitical tensions, and the shelving of the Finance Bill 2024, KRA recorded a strong rebound in the second half of the year, with revenue growing 9.1%, compared to 4.5% in the first half.
The performance was buoyed by solid growth in key sectors such as agriculture, finance, transport, and real estate. Macroeconomic conditions also improved: inflation eased to 3.6% (down from 6.3% the previous year), and the Kenyan shilling strengthened to an average of Ksh 129.35 per US dollar. Additionally, a drop in global oil prices helped reduce local fuel costs.
KRA’s breakdown of collections includes:
- Ksh 2.323 trillion in exchequer revenue, reflecting a 99% performance rate
- Ksh 248.3 billion in agency revenue, achieving a 119.5% performance rate
- Ksh 879.3 billion in customs revenue, marking an 11.1% year-on-year growth
- Ksh 1.688 trillion in domestic taxes, a 4.8% increase over the previous year
Top-performing tax heads included:
- Pay As You Earn (PAYE): Ksh 560.9 billion
- Corporation Tax: Ksh 304.8 billion
- Betting and related excise taxes, which exceeded collection targets
Also Read:Â KRA Makes Changes to Excise Duty Rates Effective December 27, 2024
KRA Commissioner General Humphrey Wattanga praised Kenyan taxpayers for their resilience:
“Despite the challenging economic environment in FY 2024/2025, taxpayers exhibited resilience and voluntarily paid their taxes to support the country’s economic transformation.”
The Authority attributed its improved performance to tech-driven reforms such as the Electronic Tax Invoice Management System (eTIMS) and AI-powered customs inspections, which helped seal revenue leaks and improve compliance.
KRA says it will continue leveraging digital innovations and data-driven strategies to further boost revenue mobilisation in the coming fiscal years.
