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KRA Sets New Record With Sh85 Billion in Customs Revenue for September

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NAIROBI, Kenya — The Kenya Revenue Authority (KRA) has recorded its highest-ever customs tax collection, raking in Sh85.1 billion in September 2025, the strongest monthly performance in the Authority’s 30-year history.

According to the Commissioner for Customs and Border Control, the performance surpassed the month’s target of Sh81.3 billion by Sh3.8 billion, translating to a 104.7 percent achievement rate. The figure also broke the previous record of Sh82.5 billion set in January this year.

“This outstanding performance demonstrates KRA’s sustained progress in revenue mobilisation and efficiency gains across customs operations,” the Commissioner said in a statement.

The record haul represents an 18.8 percent year-on-year growth compared to September 2024, buoyed by strong collections from trade taxes and petroleum levies.

Trade taxes generated Sh51.7 billion against a target of Sh50.7 billion, marking a 22.1 percent growth from last year, while petroleum levies brought in Sh33.4 billion — 109 percent of the target — driven by higher fuel imports and a weaker shilling that raised import duty values.

Digital Reforms Boost Transparency

KRA attributed the improved customs performance to ongoing institutional and technological reforms designed to curb revenue leakages and enhance transparency.

A key driver has been the Central Release Operations Office, launched in 2024, which uses a randomised digital allocation system to assign cargo verification tasks across stations.

The model has significantly reduced human interference, shortened clearance times at ports and border points, and improved compliance.

“The new verification system has minimised human contact, improved turnaround time, and closed potential revenue loopholes,” KRA said.

Rising Imports, Fiscal Pressure

Economists have linked the surge in customs revenue to a combination of factors, including increased imports of petroleum products, machinery, and consumer goods, and the continued depreciation of the shilling, which inflates import values when converted to local currency.

The customs department remains a cornerstone of KRA’s broader revenue strategy, accounting for about 34 percent of total tax collections in the 2024/25 financial year.

The latest milestone comes as KRA marks 30 years since its establishment in 1995 and continues implementing its Revenue Service 3.0 transformation agenda, aimed at digitalising tax administration, enhancing taxpayer experience, and broadening the tax base.

In August, KRA reported a 10 percent rise in overall revenue for the first quarter of the 2025/26 fiscal year, powered by stronger customs and domestic VAT collections.

KRA is under pressure to meet the government’s Sh2.9 trillion annual target, a key plank in financing Kenya’s development and economic recovery plans amid shrinking borrowing options.

“These results underscore our unwavering commitment to continuously improve systems and processes to meet revenue targets consistently,” KRA said, urging traders to maintain compliance for faster, more transparent clearance.

Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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