Kenya Revenue Authority (KRA) has hit the one trillion mark after collecting Sh1.005 trillion as of November 30, 2024, reflecting an upward trajectory in revenue collection, compared to previous financial year (2023/2024), when the agency achieved the same milestone on December 7, 2023 with Sh1.009 trillion.
Notably, revenue collected in the last five months (July – November 2024/25) amounting to Sh1,005.183 billion reflects a growth of 4.3 per cent compared to Sh963.746 billion collected in the same period last financial year.
“In spite of the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection. The Various indicators that significantly impact on revenue performance have generally moved contrary to expectations, with adverse impact on revenue mobilization,” KRA said in a statement issued on Monday, December 9.
As low domestic demand as indicated by the slowed Purchasing Managers Index (PMI) that averaged at 48.94 points in July – November 2024, economic activities continue to contract. This is also demonstrated the little growth in overall import values of goods by 1 per cent in the five months of 2024/25, which is a main source of both raw materials and final consumer goods. Additionally, government being a key consumer of VATable goods has applied austerity expenditure measures that negatively affects various key sectors over time.
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However, in a remarkable achievement, the agency’s Customs division continues to record an above Sh70 billion-mark monthly collection in the last 4 months (August – November 2024/25). Thus, cumulatively (July – November 2024) Customs revenue collections amounted to Sh359.571 billion, a growth of 5.9 per cent over Sh339.678 billion realized in the same period of FY 2023/24.
“Domestic taxes amounted to Sh643.790 billion in July – November 2024, translating to a revenue growth of 3.5% over Sh621.984 billion realized in July – November 2023.
“KRA targets to collect 2.704 trillion by the end of Financial Year 2024/2025. KRA is confident that it will continue with the upward trajectory and achieve the set target to enable the government sustain the country’s economy,” KRA said.
