NAIROBI, Kenya, July 10 – The Kenya Revenue Authority (KRA) has surpassed the revenue collection target by Sh16 billion with a Sh2.571 trillion collection in the 2024/2025 fiscal year (FY).
This represents a 6.8 percent rise in collection from the Sh2.407 trillion raised in the 2023/2024 FY.
The growth came on the back of high lending rates, international conflicts, and the shelving of the 2024 Finance Bill.
A rebound in the second half of the fiscal year, however, boosted revenue collection with a 9.1 percent growth compared to 4.5 percent in the first half.
Growth was supported by sectors such as agriculture, finance, transportation, and real estate.
Inflation eased to 3.6 percent from 6.3 percent the previous year, and the Kenyan shilling strengthened to an average of Sh129.35 against the US dollar.
Lower international oil prices also reduced fuel costs locally.
KRA collected Sh2.323 trillion in exchequer revenue (99 percent performance) and Sh248.276 billion in agency revenue (119.5 percent performance).
Likewise, customs revenue grew 11.1 percent to Sh879.3 billion, outperforming targets, while domestic taxes rose 4.8 percent to Sh1.688 trillion.
Key contributors included Corporation Tax (Sh304.8 billion), PAYE (Sh560.9 billion), and betting-related taxes, which surpassed targets.
“Despite the challenging economic environment in FY 2024/2025, taxpayers exhibited resilience and voluntarily paid their taxes to support the country’s economic transformation,” said KRA Commissioner General Humphrey Wattanga.
KRA says innovations like the Electronic Tax Invoice Management System (eTIMS) and the use of AI in customs inspections helped improve compliance and plug leakages.
