The Kenya Revenue Authority (KRA) has exceeded its revenue target for the 2024/25 financial year, collecting Ksh 2.574 trillion a performance rate of 100.6 percent. This marks a 6.8 percent growth from the Ksh 2.407 trillion collected in the previous fiscal year.
KRA Commissioner General Humphrey Wattanga attributed the growth to enhanced compliance measures and despite significant economic headwinds in the first half of the financial year, including the shelving of the Finance Bill 2024, high bank lending rates, and global economic tensions.
Exchequer revenue, which comprises the bulk of government funding, rose by 4.5 percent to Ksh 2.32 trillion compared to Ksh 2.22 trillion in FY2023/24, registering a performance rate of 99 percent. Meanwhile, agency revenue funds collected on behalf of other state agencies soared by an impressive 119.5 percent, hitting Ksh 248.28 billion against a target of Ksh 40.47 billion.
Domestic revenue also saw steady growth, increasing by 4.8 percent to Ksh 1.69 trillion. However, this fell slightly short of the target of Ksh 1.72 trillion, resulting in a 98.1 percent performance rate.
Customs revenue stood out with the highest performance rate of 105.9 percent, recording Ksh 879.33 billion against a target of Ksh 830.37 billion. This reflects an 11.1 percent increase compared to the previous financial year.
Wattanga highlighted improvements in VAT collections, which rose by 4.2 percent to Ksh 327.336 billion. He credited VAT compliance initiatives introduced in the second half of the year, such as enhanced registration controls and verification of declarations, for the growth.
Excise tax from betting services also performed strongly, collecting Ksh 13.233 billion, surpassing its target by 17.2 percent. Similarly, Pay-As-You-Earn (PAYE) income tax rose 3.3 percent to Ksh 560.963 billion.
Corporation Tax grew by 9.9 percent to Ksh 304.833 billion, buoyed by strong performance in the ICT, manufacturing, financial, and real estate sectors. Domestic excise duty recorded a performance rate of 97.2 percent, bringing in Ksh 69.385 billion.
KRA’s performance reflects continued resilience in revenue mobilization amid economic uncertainties.
