KRA surpasses revenue target, collects Sh2.57 trillion in FY 2024/25

In a year marked by rising living costs and slow growth in key sectors, the Kenya Revenue Authority (KRA) still managed to pull off an impressive financial performance, collecting Sh2.57 trillion in the 2024/25 financial year.

This figure surpasses the set target of Sh2.55 trillion, representing a 6.8 per cent growth from the previous year’s collection of Sh2.40 trillion.

In a statement released on July 10, KRA confirmed the achievement, saying, “The Kenya Revenue Authority (KRA) has surpassed the revenue target of Sh2.55trillion for the Financial Year 2024/2025 after collecting Sh2.57 trillion.”

The performance rate now stands at 100.6 per cent.

The authority credited Kenyans for this milestone as it marked 30 years of existence.

“For three decades, you've been our partners in nation-building. Every contribution has shaped Kenya's growth story. Together, we've built more than revenue; we've built Kenya's future. Asanteni Wakenya kwa Miaka 30 ya Ushirikiano!” the authority said.

KRA said the revenue growth was also driven by strong performance in several key areas, backed by the country’s 4.7 per cent Gross Domestic Product (GDP) growth and improvements in sectors such as agriculture, forestry and fishing, financial and insurance activities, transport and storage, and real estate.

From Pay As You Earn (PAYE) tax alone, KRA collected Sh560.96 billion, reflecting a 3.3 per cent rise.

However, this figure fell short of the 100 per cent target, closing at a 99 per cent performance rate.

The authority pointed to policy changes and deductions from the SHIF and Housing Levy as reasons for the slow growth.

“The slow growth was attributed to utilisation of adjustment vouchers by taxpayers to offset tax liabilities and policy impacts, which included adjustment of SHIF and Housing Levy from relief to allowable deductions before tax computation,” the statement noted.

Domestic VAT brought in Sh327.33 billion, showing a 4.2 per cent increase. In the betting sector, Excise Tax surpassed expectations, bringing in Sh13.23 billion, exceeding the target by Sh1.945 billion.

Betting Tax also rose above its Sh5.49 billion target, closing at Sh5.70 billion.

Domestic Revenue reached Sh1.68 trillion, recording a 4.8 per cent rise despite missing its target of Sh1.72 trillion.

The performance rate in this category was 98.1 per cent. Meanwhile, Customs Revenue posted one of the highest performances at 105.9 per cent after collecting Sh879.32 billion against a target of Sh830.36 billion.

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This translated to an 11.1 per cent growth.

Exchequer revenue stood at Sh2.32trillion, marking a 4.5 per cent increase, while another Sh248.27 billion was collected on behalf of other government agencies.

Corporation Tax rose by 9.9 per cent to reach Sh304.83 billion, with growth spread across sectors such as ICT, manufacturing, real estate, financial services, wholesale and retail.

However, Domestic Excise Duty closed the year at 97.2 per cent performance, with Sh69.38 billion collected.

The drop was attributed to a 13.9 per cent fall in remittances from beer manufacturers and an 8.9 per cent decline from tobacco firms.

Despite several policy and economic hurdles, the authority maintained a strong performance across most tax categories, signalling continued resilience in revenue collection and administration.