NAIROBI — The Kenya Revenue Authority (KRA) has exceeded its annual revenue target, collecting Ksh 2.571 trillion for the 2024/25 fiscal year. The figure outpaces the Ksh 2.555 trillion target, achieving a performance rate of 100.6 percent.
KRA Commissioner General Humphrey Wattanga said the growth represents a 6.8 percent increase compared to the Ksh 2.407 trillion collected in the previous fiscal year. He credited the performance to aggressive enforcement, tax compliance efforts, and targeted reforms.
“This performance was delivered despite a difficult economic climate during the first half of the year, including the shelving of the Finance Bill 2024, high interest rates, and global disruptions,” Wattanga said during the release of the annual revenue data.
According to KRA figures, exchequer revenue rose by 4.5 percent, reaching Ksh 2.32 trillion. The authority also reported a major jump in agency revenue, which hit Ksh 248.28 billion an increase of 119.5 percent against a target of Ksh 40.47 billion. This category includes funds collected on behalf of other government entities.
Domestic revenue, which includes Pay-As-You-Earn (PAYE), Value Added Tax (VAT), excise, and corporate taxes, reached Ksh 1.69 trillion. While slightly below the target of Ksh 1.72 trillion, it marked a 4.8 percent rise over last year’s figures.
Customs revenue stood out with Ksh 879.33 billion collected against a target of Ksh 830.37 billion, translating to a performance rate of 105.9 percent. That represents an 11.1 percent year-over-year increase.
Wattanga said domestic VAT collections hit Ksh 327.34 billion, driven by new compliance measures. “In the second half of the fiscal year, KRA introduced tighter VAT registration protocols and stricter declaration checks. These efforts helped us seal revenue gaps and brought in Ksh 178.96 billion,” he explained.
Excise tax on betting rose to Ksh 13.23 billion, outperforming its target by 17.2 percent. PAYE collections reached Ksh 560.96 billion, a 3.3 percent rise with a 99 percent target achievement rate.
Corporation Tax grew by 9.9 percent to Ksh 304.83 billion, slightly below the Ksh 321.08 billion target. Wattanga attributed the growth to stronger performance in sectors such as ICT, manufacturing, financial services, real estate, and wholesale trade.
Meanwhile, domestic excise tax closed the year at Ksh 69.39 billion, hitting a 97.2 percent performance rate.
The KRA’s performance comes amid broader government efforts to tighten fiscal discipline and improve public sector financing without over-relying on debt. The authority is expected to continue enhancing compliance systems and pursuing delinquent taxpayers as it works to meet future targets.
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