KRA collects KSh 2.57 trillion in FY 2024/25, surpasses target by 6.8%

Kenya Revenue Authority (KRA) has announced a growth of 6.8% in revenue collection for the financial year ending June 30, 2025.

KRA surpassed its revenue target of KSh 2.555 trillion for the year 2024/2025 after collecting KSh 2.571 trillion.

The regulator said the collection is a performance rate of 100.6%, compared to KSh 2.407 trillion collected in the financial year 2023/2024.

Why KRA recorded revenue growth

The taxman attributed the increase in revenue to a 4.7% growth in Kenya’s economy during the similar period under review.

According to the Kenya National Bureau of Statistics (KNBS), the growth in Gross Domestic Product (GDP) was supported by significant growth in sectors such as agriculture, forestry and fishing, financial and insurance activities, transportation and storage, and real estate.

Other factors that led to growth in revenue is inflation, which eased to 3.6% compared to 6.3% reported in 2023/24, the strengthening of the Kenyan Shilling against the US Dollar KSh 129.35 per dollar and stabilisation in international oil prices.

Which factors hindered KRA revenue collection

On the flip side, KRA suffered revenue loss following the withdrawal of the Finance Bill 2024, high bank lending rates, global tariff wars, and international conflicts.

“In particular, overall import values recorded weak growth of 0.04%, affected by a drop in import values of fuels and lubricants, and food and beverages, which recorded declines of 16.4% and 14.6% respectively.

“Further, export values declined by 2.0% especially from horticulture (-2.5%) and tea (-15.4%). In addition, access to credit by the private sector remained constrained due to higher commercial bank lending rates in the current year compared to the previous year,” read a press statement in part.

KRA noted that the significant revenue growth was realised through robust measures leveraged during the period.

In the second half of the year, the authority reported revenue growth by 9.1%, compared to the 4.5% growth recorded in the first half of the financial year.