The Kenya Revenue Authority (KRA) has surpassed its revenue collection target for the 2024/2025 financial year, bringing in Kshs. 2.571 trillion against a target of Kshs. 2.555 trillion.
This represents a 6.8% increase compared to the Kshs. 2.407 trillion collected in the previous financial year, achieving an overall performance rate of 100.6%.
KRA’s performance comes despite a turbulent economic environment in the first half of the year. The shelving of the Finance Bill 2024, high bank lending rates, global trade tensions, and conflicts significantly impacted revenue inflows. Imports remained largely flat, growing by just 0.04%, while export values declined by 2%, driven by weaker performance in tea and horticulture exports.
Nevertheless, improved economic indicators offered some relief. Kenya’s GDP grew by 4.7%, inflation eased to 3.6%—down from 6.3% a year earlier—and the local currency strengthened against the US dollar. Lower global oil prices also contributed to reduced fuel costs, helping to ease pressure on consumers and businesses.
KRA’s turnaround in the second half of the financial year was particularly notable, with revenue growing by 9.1%, compared to 4.5% in the first half.
Exchequer revenue stood at Kshs. 2.323 trillion, a 4.5% increase from the previous year. Although this fell slightly short of the Kshs. 2.347 trillion target, it still reflected a strong performance at 99%.
In addition, KRA collected Kshs. 248.3 billion on behalf of other government agencies, exceeding the target by over Kshs. 40 billion and achieving a performance rate of 119.5%.
Domestic revenue collection reached Kshs. 1.688 trillion, translating to 98.1% of the target. Customs revenue grew by 11.1% to Kshs. 879.3 billion, surpassing its target with a performance rate of 105.9%.
Key tax segments showed mixed performance. Pay As You Earn (PAYE) generated Kshs. 560.96 billion, reflecting a modest growth of 3.3%, while corporation tax increased by 9.9% to reach Kshs. 304.8 billion. Domestic VAT collections rose by 4.2% to Kshs. 327.3 billion, bolstered by enhanced compliance measures in the latter half of the year.
Excise duty on betting services outperformed expectations, collecting Kshs. 13.2 billion against a target of Kshs. 11.3 billion. Betting tax also surpassed its goal, with collections of Kshs. 5.7 billion.
However, domestic excise underperformed slightly, with revenue falling short of its target due to declines in beer and tobacco sales.
To support compliance and simplify tax processes, KRA continued the rollout of digital systems, including the Electronic Tax Invoice Management System (eTIMS), Artificial Intelligence tools for detecting smuggling, and the Centralized Release Office for faster cargo clearance. The new systems contributed significantly to revenue growth and operational efficiency.
KRA also intensified tax base expansion efforts. The launch of the Electronic Rental Income Tax System (eRITS) and the Block Management System helped bring more landlords into the tax net. These efforts generated Kshs. 24.9 billion.
Efforts to tax the digital economy yielded Kshs. 14.3 billion, a 32% increase from the previous year. Meanwhile, KRA mobilised Kshs. 141.3 billion from debt collection efforts and received voluntary payments of Kshs. 29 billion through the tax amnesty programme, which benefitted more than 3.5 million taxpayers.
Trade facilitation measures—such as faster cargo processing and the establishment of trade centres along the Northern Corridor—further boosted revenue and eased cross-border commerce.
KRA also reported success in dispute resolution, concluding over 1,100 cases and unlocking Kshs. 18.3 billion through Alternative Dispute Resolution. An additional Kshs. 65 billion was recovered through court litigation.
The authority’s anti-corruption initiatives, including whistleblower programmes and internal staff audits, recovered Kshs. 6.8 billion and led to action on 45 integrity-related staff cases.
KRA Commissioner General emphasized the agency’s commitment to professionalism and integrity, thanking taxpayers for their role in strengthening the country’s economic future. As of 30th June 2025, the on-time filing rate stood at 79%.
