KRA
The Kenya Revenue Authority (KRA) has announced a total revenue collection of Ksh2.112 trillion by April 30, 2025.
In a statement, KRA said the collection reflects a performance rate of 96.5% against the target of Kshs 2.189 trillion.
“During the period, revenue collection registered a growth of 6.1%, reflecting an upward trajectory in collection compared to Kshs 1.990 Trillion realized in the same period during the previous financial year (2023/2024),” KRA stated.
According to KRA, Domestic taxes amounted to Kshs 1.386 Trillion between July – April 2024/25, translating to a revenue growth of 4.7% over Kshs 1.323 Trillion realized in July – April 2023/24.
Customs revenue collection also grew by 9.1% after registering a cumulative collection of Kshs 722.743 Billion, compared to Kshs 662.447 Billion that was collected in the same period of FY 2023/24.
Agency revenue (collected on behalf of other Government entities) collection amounted to Kshs 205.518 billion, registering a performance rate of 111.8% against a target of Kshs 183.789 billion.
Exchequer revenue (collected on behalf of the National Treasury) amounted to Kshs 1.906 trillion, reflecting a performance rate of 95.0% against a target of Kshs 2.006 trillion.
Despite the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection.
The various indicators that influence revenue performance have generally moved contrary to expectations, affecting revenue mobilization.
GDP grew at a slower pace of 4.0% in Q3 2024, compared to 6.0% in Q3 2023. Similarly, the Purchasing Managers Index (PMI) averaged at 49.8 between July 2024 and April 2025, indicating a slowdown in private sector activities.
This subdued demand was further evidenced by a 1.6% drop in import values, an important indicator of domestic demand for both raw materials and consumer goods.
Additionally, in spite of the Central Bank of Kenya lowering its base lending rate to 10.75%, commercial bank lending rates remained high, averaging 17.22%, as a number of banks had yet to adjust their rates.
This disparity negatively impacted private sector borrowing and investment. However, there are strong indications that most banks are working towards ensuring compliance.
Also Read: KRA Goes After Morara Kebaso Over Filing Nil Tax Returns Despite Sh186M Income
