Kenya Revenue Authority (KRA) collected Ksh. 1.243 Trillion as of 31st December, 2024. This reflects a growth of 4.5% compared to the collection of Ksh. 1.189 Trillion realized in the same period of the previous financial year (2023/2024).
Exchequer revenue (collected on behalf of The National Treasury) collection amounted to Ksh. 1.120 Trillion while Agency revenue (collected on behalf of other Government entities) amounted to Ksh. 122.872 Billion. This was a performance rate of 121.3% against a target of Ksh. 101.316 Billion.
In spite of the growth, the collection was affected by various economic indicators that directly drive revenue collection. For instance, GDP growth slowed to 4.0% in third quarter 2024, down from 6.1% in third quarter 2023, and 4.6% in second quarter 2024. Further, low domestic demand was experienced as indicated by the Purchasing Managers Index (PMI) that averaged at 49.2 points in July – December 2024 indicating a contraction in the economic activities. This is also indicative of the decline in overall import values of goods by 0.6% in the six 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 applied austerity expenditure measures that negatively affects various key sectors over time. Cumulatively (July – December 2024), customs revenue collection amounted to Ksh. 429.127 Billion, a growth of 4.8% over Ksh. 409.548 Billion realized in the same period of FY 2023/24.
Domestic taxes amounted to Ksh. 811.847 Billion in July – December 2024, translating to a revenue growth of 4.4% over Ksh. 777.617 Billion realized in July – December 2023.
Import value declines were recorded from Foods & Beverages (21.5% decline), and Fuels & Lubricants (17.7% decline). These two broad categories of goods account for slightly over one third of import values.
KRA targets to collect Ksh. 2.684 Trillion by the end of Financial Year 2024/2025.