KRA nets over Sh2 trillion revenue in ten months

Kenya Revenue Authority headquarters at Time Towers

The Kenya Revenue Authority has recorded a significant milestone after collecting Sh2.112 trillion in tax revenue as of April 30, 2025.

This marks the first time the Authority has crossed the Sh2 trillion mark within 10 months of the financial year, signaling steady progress in revenue mobilisation efforts.

According to a statement released by KRA, the performance reflects a 96.5 per cent achievement rate against a target of Sh2.189 trillion.

The taxman also reported a year-on-year growth of 6.1 per cent compared to the Sh1.990 trillion collected over the same period in the 2023/2024 financial year.

Revenue from domestic taxes amounted to Sh1.386 trillion between July 2024 and April 2025, representing a 4.7 per cent increase from the Sh1.323 trillion collected during the same period in the previous fiscal year.

“Customs revenue also showed strong performance, registering a 9.1 per cent growth,” KRA said.

It said the collections stood at Sh722.7 billion, up from Sh662.4 billion recorded during a similar period last period.

Agency revenue, collected on behalf of other government entities, registered the highest percentage growth—soaring by 37.1 per cent to reach Sh205.518 billion, exceeding the target by 11.8 per cent.

Meanwhile, Exchequer revenue stood at Sh1.906 trillion, reflecting a 95 per cent performance rate against the target and a 3.6 per cent increase from the previous year.

KRA noted that despite the growth, revenue collection was hindered by a range of unfavorable economic indicators.

Kenya's GDP growth slowed to 4.0 per cent in Q3 2024 compared to 6.0 per cent in the same period in 2023, while the Purchasing Managers Index averaged 49.8, indicating contraction in private sector activity.

Import values dropped by 1.6 per cent, reflecting subdued domestic demand, while exports declined by 3.6 per cent, driven by notable decreases in tea and horticulture exports.

Although the Central Bank of Kenya lowered its base lending rate to 10.75 per cent, commercial bank rates remained elevated at an average of 17.22 per cent, limiting private sector borrowing and investment.

A stronger shilling also coincided with a 10.2 per cent drop in oil imports.

Additionally, tax offsets through adjustment vouchers, amounting to Sh53.8 billion, and policy changes—such as reclassifying the Social Health Insurance Fund (SHIF) and Housing Levy as allowable deductions—reduced effective PAYE collections.

To bolster revenue, KRA rolled out several compliance-enhancing initiatives.

The Centralised Release Office has improved cargo clearance, boosting customs revenue, while average daily non-oil import revenue rose to Sh2.309 billion in March and April 2025.

The tax authority also launched the Electronic Rental Income Tax System (eRITS) to streamline rental income tax processes for landlords.

Meanwhile, the Tax Amnesty Programme has collected Sh13.5 billion and waived Sh164.9 billion in penalties and interest, benefiting over three million taxpayers.