Kenya Revenue Authority (KRA) has hit the one trillion shilling mark after collecting Ksh1.005 trillion as of 30th November, 2024. This reflects an upward trajectory in revenue collection, compared to the previous financial year (2023/2024), when it achieved the same milestone on 7th December 2023 with Ksh1.009 trillion.
The revenue collected in the last 5 months (July – November 2024/25) amounting to Ksh1,005.183 billion reflects a growth of 4.3% compared to Ksh963.746 billion collected in the same period last financial year. In spite of the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection. The various indicators that significantly impact on revenue performance have generally moved contrary to expectations, with adverse impact on revenue mobilisation.
Key among these indicators is the significant low domestic demand as indicated by the slowed Purchasing Managers Index (PMI) that averaged at 48.94 points in July – November 2024 indicating a contraction in the economic activities. This is also indicative from the modest growth in overall import values of goods by 1.0% in the five months of 2024/25, which is a main source of both raw materials and final consumer goods. Furthermore, Government being a key consumer of VATable goods has applied austerity expenditure measures that negatively affects various key sectors over time.
However, in a remarkable achievement, customs continues to record an above Ksh70 billion mark monthly collection in the last four months (August – November 2024/25). Thus, cumulatively (July – November 2024) customs revenue collections amounted to Ksh359.571 billion, a growth of 5.9% over Ksh339.678 billion realized in the same period of FY 2023/24.
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Domestic taxes amounted to Ksh643.790 Billion in July – November 2024, translating to a revenue growth of 3.5% over Ksh621.984 Billion realized in July – November 2023.
KRA targets to collect 2.704 trillion by the end of Financial Year 2024/2025. KRA says is confident that it will continue with the upward trajectory and achieve the set target to enable the government sustain the country’s economy.
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