The Kenya Revenue Authority (KRA) has hit the one trillion mark after collecting Sh1.005 trillion as of 30th November 2024.
The Authority’s acting Commissioner for Strategy, Innovation and Risk Management, Alex Mwangi, said this reflects an upward trajectory in revenue collection compared to the previous financial year (2023/2024), when they reached the same milestone on 7th December 2023, with Sh1.009 trillion.
“Notably, revenue collected in the last five months (July-November 2024/25), amounting to Sh1.005 billion, reflects a growth of 4.3% compared to Sh963.746 billion collected in the same period last financial year,” said Mwangi.
He explained that despite the progressive growth, the collection was affected by various economic indicators that directly impact revenue collection.
Mwangi noted that the key indicators influencing revenue performance have generally moved contrary to expectations, adversely affecting revenue mobilisation.
“Key among these indicators is significantly low domestic demand, as indicated by the slowed Purchasing Managers Index (PMI), which averaged 48.94 points from July-November 2024, signalling a contraction in economic activity.”
He also pointed to modest growth in overall import values, which increased by just 1.0% during the first five months of 2024/25. Imports are a primary source of both raw materials and final consumer goods.
Mwangi further disclosed that the government, as a key consumer of VATable goods, has applied austerity measures that have negatively impacted various key sectors over time.
“However, in a remarkable achievement, customs continue to record monthly collections above the Sh70 billion mark in the last four months (August-November 2024/25).”
Thus, cumulatively (July-November 2024), customs revenue collections amounted to Sh359.571 billion, a growth of 5.9% compared to Sh339.678 billion realised in the same period of FY 2023/24,” Mwangi said.
He added that domestic taxes amounted to Sh643.790 billion in July-November 2024, translating to a revenue growth of 3.5% over the Sh621.984 billion realised in the same period in 2023.
The acting Commissioner stated that KRA targets to collect Sh2.704 trillion by the end of the 2024/2025 financial year.
“KRA is confident it will continue the upward trajectory and achieve the set target, enabling the government to sustain the country’s economy,” Mwangi concluded.
– Joseph Ng’ang’a
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