TIMES TOWER, Nairobi –Despite economic challenges, the Kenya Revenue Authority has collected Sh 2.571 trillion in the 2024/2025 financial year exceeding it’s target of Sh 2.555 trillion.
This milestone reflects not just fiscal discipline but the resilience and commitment of Kenyan taxpayers.
In a press statement released on July 10th, KRA revealed that the collection represents a 6.8 percent growth compared to the previous financial year where they collected Sh 2.407 trillion.
This translates to a performance rate of 100.6 percent- a steady recovery and improved compliance amid a challenging economic landscape.
The Authority attributed the milestone to the continued support of Kenyan taxpayers and cited the country’s economic resilience.
“For three decades, you’ve been our partners in nation building. Every contribution has shaped Kenya’s growth story. Together we’ve built more than revenue; we’ve built Kenya’s future,” the statement read.
Alongside significant contributions from key sectors such as agriculture, forestry and fishing, real estate, financial and insurance activities and transport and storage, the authority also linked the positive performance to a 4.7 percent growth in the country’s Gross Domestic Product (GDP).
In specific tax categories, Pay As You Earn (PAYE) tax brought in Sh 560.963 billion, marking a 3.3 percent growth with a 99 percent performance rate. The slow growth was attributed to adjustments in SHIF and housing levy deductions.
Domestic VAT collections reflected a 4.2 percent increase, standing at Sh 327.336 billion, while Corporation Tax grew by 9.9 percent, recording Sh 304.833 billion in collections.
The evident growth in Corporation Tax was made easy by a vibrant performance in the ICT, manufacturing, financial services, real estate and wholesale and retail sectors.
Betting and excise taxes also showed notable outcomes.
The Excise Tax from betting services surpassed expectations with a surplus of Shs 1.945 billion, bringing in Sh 13.233 billion.
Betting Tax collections also exceeded the target of Sh 5.495 billion, registering Sh 5.7 billion.
On the other hand, customs revenue outperformed expectations bringing in Sh 879.329 billion, surpassing it’s target of Sh 830.368 billion, which is an 11.1 percent growth and a 105.9 percent performance rate.
The exchequer revenue brought in Sh 2.323 trillion, a 4.5 percent increase, while Sh 248.276 billion was collected on behalf of other government agencies.
However, not all sectors hit their set targets. Domestic revenue collections recorded Sh1.688 trillion against a target of Sh 1.721 trillion, achieving 98.1 percent.
Similarly, Domestic Excise Duty recorded Sh 69.385 billion in collections, which is a 97.2 percent performance.
This shortfall was attributed to a decline in remittances from manufactures of beer and tobacco products, which dropped by 13.9 percent, respectively.
The KRA’s strong performance despite persistent fiscal pressures and inflationary trends, underscores the nation’s improving tax administration and the growing commitment of Kenyans towards national development.
