Kenya Revenue Authority (KRA) has recorded a 6.8 per cent jump in its collected revenues to Sh2.571 trillion for the 2024-2025 financial year, against a revenue target of Sh2.555 trillion.

KRA collected Sh2.407 trillion in the previous financial year and the revenue performance comes in the face of a growth in GDP of 4.7 per cent, according to the last Economic Survey.

According to the taxman, there was notable growth in key sectors like agriculture, forestry and fishing, financial and insurance activities, transportation and storage, and real estate.

Similarly, the overall inflation eased to average at 3.6 per cent in 2024-2025 compared to 6.3 per cent in 2023-2024.

During the period in review, the exchange rate of the Kenya Shilling against the US Dollar strengthened to Sh129.35/US$ on average, down from Sh144.1 in the previous fiscal year.

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Global oil prices per barrel dropped by 12.5 per cent, resulting in a marginal revision of local fuel pump prices for both petrol and diesel by 11.8 per cent and 12.2 per cent respectively.

Key factors KRA says adversely impacted revenue collection in 2024-2025 include shelving of the Finance Bill 2024, high bank lending rates, global tariffs war, and international conflicts.

Overall import values growth weakened at 0.04 per cent, while export values declined by 2.0 per cent, especially from horticulture (-2.5 per cent) and tea (-15.4 per cent).

Additionally, access to credit by the private sector remained constrained owing to increased commercial bank lending rates in the current year compared to the previous year.

Measures by KRA saw revenue collection in the second half of the financial year grow

by 9.1 per cent compared to 4.5 per cent growth posted in the first six months of the year.

Revenue Performance

1. Exchequer Revenue grew by 4.5 per cent to Sh2.323 trillion

2. Agency Revenue rose by 119.5 per cent to Sh248.276 billion

3. Domestic and Customs Revenue spiked by 4.8 per cent to Sh1.688 trillion

4. Customs Revenue posted a 105.9 per cent growth to Sh879.329 billion

Key Tax Heads Performance

1. Domestic VAT collection grew by 4.2 per cent to Sh327.336 billion.

2. Excise Tax on Betting increased by 117.2 per cent Sh13.233 billion

3. Pay As You Earn (P.A.YE) collection grew by 3.3 per cent to Sh560.963 billion.

4. Corporation Tax grew by 9.9 per cent to Sh304.833 billion

5. Domestic Excise Tax recorded a 97.2 per cent growth to Sh69.385 billion.