NAIROBI, Kenya, Jan 28 – The Kenya Revenue Authority (KRA) collected Sh1.243 trillion by December 31, 2024, reflecting a 4.5 percent increase compared to Sh1.189 trillion in the same period of the 2023/2024 financial year.
Exchequer revenue, collected on behalf of the National Treasury, amounted to Sh1.12 trillion, while agency revenue, collected on behalf of other government entities, reached Sh122.872 billion.
Agency revenue surpassed its target of Sh101.316 billion, achieving a performance rate of 121.3 percent.
Despite this growth, revenue collection was constrained by several economic factors. GDP growth slowed to 4 percent in Q3 2024, down from 6.1 percent in Q3 2023 and 4.6 percent in Q2 2024.
Additionally, domestic demand weakened, as shown by the Purchasing Managers Index (PMI), which averaged 49.2 points between July and December 2024, indicating a contraction in economic activities.
A 0.6 percent decline in import values over the six months of FY 2024/25 also impacted revenue collection, given imports’ significant contribution to customs revenue.
Furthermore, government austerity measures, particularly on VATable goods, affected various sectors’ performance.
Customs revenue for July–December 2024 reached Kshs 429.127 billion, reflecting a 4.8% growth over Kshs 409.548 billion in the same period of FY 2023/24. Domestic taxes increased to Kshs 811.847 billion, a 4.4% rise from Kshs 777.617 billion in the corresponding period of 2023.
KRA attributed the growth to ongoing reforms, including enhanced tax compliance measures, even as the economic environment posed challenges. The authority continues to focus on boosting revenue collection amid evolving fiscal dynamics.
