Tax collections rise to Sh 2.571 trillion as KRA exceeds target

Business
By Ronald Kipruto | Jul 10, 2025

Kenya Revenue Authority logo. [Standard File]

The Kenya Revenue Authority has surpassed its revenue target for the 2024/25 financial year, collecting Sh 2.572 trillion against a target of Sh 2.555 trillion.

The collections rose from Sh 2.407 trillion recorded in the previous year, with the authority linking the growth to a 4.7 per cent rise in Gross Domestic Product.

“The revenue performance reflects prevailing economic indicators with notable growth in agriculture, financial services, transport and real estate,” noted KRA in a statement on Thursday.

The authority explained that a stronger shilling, lower inflation and falling oil prices supported the economy despite global tariff wars and high lending rates.

“The exchange rate of the Kenya shilling against the US dollar strengthened to an average of Sh 129.35 during the year from Sh 144.1 previously,” observed KRA.

International oil prices dropped by 12.5 per cent, leading to lower local fuel prices by 11.8 per cent for petrol and 12.2 per cent for diesel.

However, KRA pointed out that shelving the Finance Bill 2024, weak import growth of 0.04 per cent, and falling export values hurt revenue performance in the first half of the year.

“Import values of fuels and lubricants dropped by 16.4 per cent while food and beverage imports fell by 14.6 per cent,” explained the authority.

The agency reported a 4.5 per cent rise in exchequer revenue, collecting Sh 2.323 trillion, and Sh 248.2 billion collected for other government agencies, surpassing the target by Sh 40.4 billion.

Domestic revenue grew by 4.8 per cent to Sh 1.688 trillion while customs revenue rose by 11.1 per cent to Sh 879.3 billion, achieving a performance rate of 105.9 per cent.

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