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KRA noted that Despite the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection. The Various indicators that significantly impact revenue performance have generally moved contrary to expectations, with an adverse impact on revenue mobilization.
The Kenya Revenue Authority’s (KRA) revenue for the last five months has hit Kshs 1.005 trillion, marking a 4.3% growth compared to Kshs 963.746 Billion collected in the same period last year.
Customs recorded an above Kshs 70 Billion-mark monthly collection in the last 4 months (August – November 2024/25). Cumulatively (July – November 2024) Customs revenue collections amounted to Kshs 359.571 Billion, a growth of 5.9% over Kshs 339.678 Billion realized in the same period of FY 2023/24.
Domestic taxes amounted to Kshs 643.790 Billion in July – November 2024, translating to a revenue growth of 3.5 per cent over Kshs 621.984 Billion realized in July – November 2023.
In a statement, KRA noted that despite the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection. The Various indicators that significantly impact revenue performance have generally moved contrary to expectations, with an adverse impact on revenue mobilization.
Key among these indicators is the significant low domestic demand as indicated by the slowed Purchasing Managers Index (PMI) that averaged 48.94 points in July – November 2024 indicating a contraction in economic activities.
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This is also indicative of the modest growth in overall import values of goods by 1.0% in the five months of 2024-25, which is a main source of both raw materials and final consumer goods. Furthermore, the Government being a key consumer of VATable goods has applied austerity expenditure measures that negatively affect various key sectors over time. The taxman is targeting collections of KShs 2.704 trillion by the end of the Financial Year 2024-25.
