VAT collection in Kenya(Sh bn)

Kenya’s Value Added Tax (VAT) collections have posted steady growth over the past four financial years, reflecting increased economic activity and improved tax compliance.

Treasury data shows VAT revenues rose from Sh244.93 billion in 2021/22 to Sh327.66 billion in 2024/25 for locally generated taxes. VAT on imports also climbed from Sh278.17 billion to Sh333.07 billion over the same period.

The figures underscore VAT’s position as the second-largest revenue source after income tax, contributing Sh660.7 billion to the exchequer.

The upward trend signals stronger domestic consumption and sustained import activity, boosting government revenue mobilisation efforts.