Kenya Revenue Authority (KRA) collected Ksh1.243 trillion as of 31st December, 2024. This reflects a growth of 4.5% compared to the collection of Ksh1.189 Trillion realised in the same period of the previous financial year (2023/2024).
Exchequer revenue (collected on behalf of The National Treasury) collection amounted to Ksh1.120 trillion while agency revenue (collected on behalf of other government entities) amounted to Ksh122.872 billion, registering a performance rate of 121.3% against a target of Ksh101.316 Billion.
In spite of the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection. For instance, GDP growth slowed to 4.0% in third quarter 2024, down from 6.1% in third quarter 2023, and 4.6% in second quarter 2024.
Further, low domestic demand was experienced as indicated by the Purchasing Managers Index (PMI) that averaged at 49.2 points in July – December 2024 indicating a contraction in the economic activities. This is also indicative of the decline in overall import values of goods by 0.6% in the six months of 2024/25, which is a main source of both raw materials and final consumer goods.
Furthermore, the Government being a key consumer of VATable goods applied austerity expenditure measures that negatively affects various key sectors over time. Cumulatively (July – December 2024), Customs revenue collection amounted to Ksh429.127 Billion, a growth of 4.8% over Ksh409.548 billion realised in the same period of FY 2023/24. Domestic taxes amounted to Ksh811.847 Billion in July – December 2024, translating to a revenue growth of 4.4% over Ksh777.617 billion realized in July – December 2023.
Import value declines were recorded from Foods & Beverages (21.5% decline), and Fuels & Lubricants (17.7% decline). These two broad categories of goods account for slightly over ⅓ of import values. KRA targets to collect 2.684 Trillion by the end of Financial Year 2024/2025. KRA is confident that it will continue with the upward trajectory and achieve the set target to enable the government to sustain the country’s economy.
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