Kenya Revenue Authority’s (KRA) has announced that gross VAT collection has reached a historic monthly revenue of Ksh. 34.552 billion in January 2025. This marks the first time this tax head has collected such a sum in KRA’s history after KRA collected Ksh. 30.636 billion in January 2024 which is second highest.
The VAT tax head began the second half of the 2024/2025 financial year on a strong note, surpassing its January target of Ksh. 33.995 billion by Ksh. 556million, achieving a performance rate of 101.6%. This represents a 12.8% growth over the collection realized in a similar period in the financial year 2023/2024.
The VAT performance was largely driven by the energy sector, which saw a 121.6% increase in remittances from oil marketers. The manufacturing sector also contributed to the positive performance, with notable increases in remittances from producers of beer (10.5%), soft drinks (115.6%), tobacco (9.5%), sugar (121.5%), and wines & spirits (12.9%).