The Lower Eastern Times Opening The Third Eye
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The Kenya Revenue Authority (KRA) has outperformed its revenue collection goal by Sh16 billion, recording Sh2.571 trillion in total collections for the 2024/2025 financial year.
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This marks a 6.8% increase from the Sh2.407 trillion collected in the previous fiscal year, despite economic headwinds such as high interest rates, global conflicts, and the withdrawal of the 2024 Finance Bill.
A strong recovery in the latter half of the fiscal year helped drive a 9.1% growth in revenue, up from 4.5% growth in the first half. Key sectors driving the increase included agriculture, finance, transport, and real estate.
Improved economic conditions—such as reduced inflation (down to 3.6% from 6.3%) and a stronger Kenyan shilling (averaging Sh129.35 against the US dollar)—also supported the uptick. Lower global oil prices contributed to reduced local fuel costs.
KRA collected Sh2.323 trillion in exchequer revenue, achieving 99% of its target, while agency revenue hit Sh248.276 billion, surpassing its goal at 119.5%.
Customs revenue grew by 11.1% to Sh879.3 billion, exceeding expectations, and domestic tax revenue rose by 4.8% to Sh1.688 trillion.
Notable revenue sources included Corporation Tax (Sh304.8 billion), Pay As You Earn (PAYE) at Sh560.9 billion, and betting taxes, which exceeded projected targets.
“Despite a tough economic climate in FY 2024/2025, taxpayers demonstrated resilience and paid their dues, helping to support national development,” said KRA Commissioner General Humphrey Wattanga.
He added that innovations like the Electronic Tax Invoice Management System (eTIMS) and AI-powered customs inspections played a vital role in enhancing tax compliance and sealing revenue leaks.
