NAIROBI – The Kenya Revenue Authority (KRA) collected Ksh 879.3 billion in customs revenue during the 2024/2025 financial year, marking an 11% increase compared to the previous year.
The sharp growth was attributed to stronger performance in both oil and non-oil taxes, tighter enforcement of tax laws, and a significant drop in import exemptions.
KRA Commissioner for Customs and Border Control Lilian Nyawanda confirmed the rise, citing a daily average of Ksh 3.5 billion in collections. “Customs and Border Control performance was driven by non-oil taxes, which rose by 10.3% to Ksh 541.1 billion, and oil taxes, which grew by 12.5% to Ksh 338.3 billion,” Nyawanda stated Thursday.
The third quarter registered the strongest gains, with January 2025 posting a record high of Ksh 82.6 billion and a performance rate of 121.1%.
Import duty alone grew by 18.3% to Ksh 157.9 billion, fueled by increased activity in the agriculture and steel sectors, which recorded growth rates of 67% and 39% respectively. Excise duty collections rose by 11.6% to Ksh 125.3 billion. A 37.4% reduction in tax exemptions particularly on imports of sugar, rice, and cooking oil boosted non-oil revenue further. KRA said the tighter exemption policy helped close loopholes that had previously undermined revenue performance.
To plug leaks, the authority ramped up its enforcement operations across the country. In the 12-month period, customs officers seized contraband goods valued at Ksh 549 million. These included more than 40,000 liters of ethanol smuggled in under the guise of imported molasses.
“KRA implemented stricter enforcement measures through advanced cargo scanning and data-driven risk profiling,” Nyawanda said. “This enabled us to intercept illicit consignments that would have otherwise escaped taxation.”
The crackdown translated into higher regional revenue. Western and Rift Valley regions saw customs revenue more than double rising by 122% and 117% respectively. Bonded warehouses and ports also posted growth of 17% and 15%. KRA also recorded a 0.8% rise in customs revenue per imported vehicle, following enhanced inspection procedures on motor vehicle imports.
The agency introduced centralized clearance procedures to streamline cargo handling, reducing average clearance times from 110 hours to 42 hours.
To support trade across the Northern Corridor a critical route connecting Kenya to Uganda, South Sudan, and Ethiopia KRA opened three new trade facilitation centers in Kainuk, Lodwar, and Kakuma.
Nyawanda said the results demonstrate the authority’s success in combining technology, enforcement, and procedural reform to strengthen border controls and grow revenue without increasing tax rates.
The customs performance is expected to support ongoing government efforts to fund development projects while managing public debt levels.
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