NAIROBI, Kenya- The Kenya Revenue Authority (KRA) has announced an impressive revenue milestone, collecting Ksh 1.005 trillion in the first five months of the current fiscal year, from July to November 2024.
This collection represents 37.2pc of the Ksh 2.704 trillion target set for the financial year 2024/2025, underscoring steady growth in Kenya’s revenue streams despite economic hurdles.
KRA’s latest figures reflect a 4.3pc increase compared to the Ksh 963.75 billion collected during the same period last year.
The growth was primarily driven by surges in customs and domestic taxes, which demonstrated resilience despite a contraction in economic activities that dampened overall revenue performance.
“In spite of the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection,” KRA noted in a statement. “The indicators significantly impacted revenue mobilization, moving contrary to expectations.”
Customs revenue climbed by 5.9pc to Ksh 359.6 billion, up from Ksh 339.68 billion last year, while domestic taxes grew by 3.5pc to reach Ksh 621.98 billion.
KRA remains optimistic about meeting its ambitious Ksh 2.704 trillion target for the fiscal year, emphasizing its confidence in sustaining an upward revenue trajectory. This performance is crucial to supporting government operations and stabilizing the country’s economy.
“KRA is confident that it will continue with the upward trajectory and achieve the set target to enable the government sustain the country’s economy,” the authority affirmed.
While the recent revenue growth is a positive signal, KRA acknowledged that economic headwinds, including inflation and reduced consumer spending, have presented challenges.
The authority continues to explore strategies to adapt and improve revenue mobilization amidst these conditions.
