KRA Eyes Ksh2.684 Trillion Target as Tax Revenue Hits Ksh1.243 Trillion
The Kenya Revenue Authority (KRA) announced that it had collected Ksh1.243 trillion in taxes during the 2024/2025 fiscal year by December 31, 2024. This amount represents 95.7% of its Ksh1.298 trillion target and marks a 4.5% growth compared to the Ksh1.189 trillion collected during the same period in the 2023/2024 fiscal year.
In a statement released on Tuesday, January 28, KRA reported that revenue collected on behalf of the National Treasury (Exchequer revenue) amounted to Ksh1.120 trillion. This collection achieved a performance rate of 93.6% against the target of Ksh1.197 trillion.
Additionally, the taxman collected Ksh122.872 billion in agency revenue for other government entities, surpassing its target of Ksh101.316 billion with a performance rate of 121.3%.
Despite the growth in revenue, KRA acknowledged that economic challenges affected overall collections. The agency noted that GDP growth slowed to 4.0% in the third quarter of 2024, down from 6.1% in the same period in 2023 and 4.6% in the second quarter of 2024.
KRA also highlighted weak domestic demand, reflected in the Purchasing Managers Index (PMI), which averaged 49.2 points between July and December 2024, signaling a contraction in economic activity.
The decline in overall import values of goods by 0.6% during the first half of the 2024/2025 fiscal year further impacted revenue collections. KRA attributed this drop to reduced availability of raw materials and consumer goods, which are significant revenue sources.
Additionally, the government’s austerity measures targeting VAT-able goods negatively affected key sectors over time.
Customs revenue collection showed positive growth, reaching Ksh429.127 billion between July and December 2024, a 4.8% increase from Ksh409.548 billion during the same period in the previous fiscal year.
Domestic taxes also grew by 4.4%, totaling Ksh811.847 billion compared to Ksh777.617 billion collected in the corresponding period of the prior year.
Looking ahead, KRA has set an ambitious target of Ksh2.684 trillion for the 2024/2025 fiscal year.
“KRA is confident it will sustain the upward trajectory and achieve the set target to support the government in maintaining the country’s economy,” the agency stated.
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