ECONOMY

KRA Records Marginal Growth in 2024 Revenue Collection

Share
KRA Revenue collection 2024
In spite of the progressive growth, the collection was affected by various economic indicators that directly drive revenue.
Share

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. 

> Radio 47 Set to Unveil New Studios as it Marks Second Anniversary

Written by
BT Reporter -

editor [at] businesstoday.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
A section of KRA office. PHOTO/@KRACorporate/X
BUSINESS

KRA Appoints New Commissioners to Strengthen Technology and Tax Research

Kenya Revenue Authority (KRA) has appointed two new commissioners to lead its...

Amsons Group managing director Edha Nahdi
BUSINESS

Amsons Group Targets East Africa in Bold Renewable Energy Expansion

Pan-African conglomerate Amsons Group has begun expanding aggressively into renewable energy across...

Kenya Association of Manufacturers CEO Tobias Alando
BUSINESS

KAM: Kenya loses USD 5.3 Billion Annually in Untapped Exports

Kenya is losing out on billions in export earnings every year despite...

Dr Peter Ndegwa Safaricom Group Plc CEO
FEATURED STORY

Safaricom Secures US$138m from Standard Bank for Its Ethiopian Subsidiary

Safaricom Plc, a leading telecommunications firm, has sealed a $138m funding deal...