Nairobi: The Kenya Revenue Authority (KRA) has successfully reached the Sh. 2 trillion milestone, collecting Sh. 2.112 trillion by April 30, 2025. Speaking to the media, KRA Commissioner General Humphrey Wattanga reported a performance rate of 96.5 percent against the target of Sh. 2.189 trillion.
According to Kenya News Agency, the revenue collection experienced a growth of 6.1 percent, surpassing the Sh. 1.990 trillion collected in the previous financial year, 2023/2024. Domestic taxes accounted for Sh. 1.386 trillion for July-April 2024/2025, marking a 4.7 percent increase over the Sh. 1.3 trillion collected in the same period the previous year. Customs revenue also saw a 9.1 percent rise, with collections reaching Sh. 722.7 billion compared to Sh. 662.4 billion in 2023/2024.
KRA’s agency revenue collected on behalf of other government entities totaled Sh. 205.5 billion, achieving a performance rate of 111.8 percent against a target of Sh. 183.789 billion. This indicates a 37.1 percent growth compared to the Sh. 149.876 billion collected in the same period of the previous financial year.
Exchequer revenue for the National Treasury amounted to Sh. 1.906 trillion, reflecting a 95 percent performance rate against a target of Sh. 2 trillion. This is a 3.6 percent growth from the Sh. 1.84 trillion collected in the previous financial year.
Commissioner General Wattanga noted that despite the growth, economic indicators impacted revenue collection. GDP growth slowed to 4 percent in the third quarter of 2024, compared to 6 percent in the same quarter of 2023. The Purchasing Manager Index (PMI) averaged 49.8 from July 2024 to April 2025, indicating slowed private sector activity.
Wattanga highlighted a 1.6 percent decline in import values, significant for domestic demand, despite the Central Bank of Kenya (CBK) lowering its base lending rate. Commercial bank rates remained high, averaging 17.22 percent, affecting private sector borrowing and investment.
The Commissioner General also mentioned that the stronger shilling led to a decrease in import values, notably a 10.2 percent drop in oil imports. Export earnings fell by 3.6 percent due to declines in key sectors like tea and horticulture.
Wattanga explained that a recent policy change allows taxpayers to offset current tax liabilities with adjustment vouchers, leading to Sh. 53.8 billion being used to offset liabilities. Despite these challenges, KRA has enhanced compliance through initiatives like the Centralized Release office, improving customs revenue performance.
The Electronic Rental Income Tax System (eRITS) was introduced to streamline tax compliance for landlords, while the tax amnesty program generated Sh. 13.5 billion in revenue. The Electronic Tax Invoice Management System (eTIMS) improved VAT compliance, and the Enhanced Dispute Resolution framework expedited tax-related disputes, releasing Sh. 21.9 billion for collection.
KRA targets Sh. 2.668 trillion by the end of the 2024/2025 financial year and remains confident in continuing its upward trajectory to support the country’s economy.