Kenya Revenue Authority surpasses Sh1 trillion in revenue collection in five months
By Lucy Mumbi |
KRA announced that revenue for the first five months of the 2024/25 financial year, spanning July to November, totalled Sh1.005 trillion.
The Kenya Revenue Authority (KRA) has reached a significant milestone in revenue collection, surpassing the Sh1 trillion mark by November 30, 2024.
This represents a 4.3 per cent increase compared to the Sh963.746 billion collected during the same period last year.
Keep reading
- National Assembly rejects 5 per cent tax on infrastructure bonds interest
- National Assembly’s committee proposes two per cent railway levy, rejects lower rate
- MPs propose exempting small traders from eTIMS compliance to ease burden
- Case challenging IMEI declaration for passengers to be heard in December
KRA announced that revenue for the first five months of the 2024/25 financial year, spanning July to November, totalled Sh1.005 trillion, an achievement reached earlier than in the last financial year when the same milestone was recorded on December 7, 2023.
Domestic taxes contributed Sh643.790 billion during this period, reflecting a 3.5 per cent growth compared to Sh621.984 billion collected in the same timeframe last year.
Customs revenue also showed strong performance, maintaining monthly collections above the Sh70 billion mark for four consecutive months (August to November).
Cumulatively, customs revenue amounted to Sh359.571 billion, a 5.9 per cent increase compared to Sh339.678 billion recorded during the same period in the 2023/24 financial year.
Challenges
Despite the growth, KRA acknowledged challenges affecting revenue performance.
"The collection was affected by various economic indicators that directly drive revenue collection," the authority said in a statement.
One of the key factors highlighted was the significant decline in domestic demand, as shown by the Purchasing Managers Index (PMI), which averaged 48.94 points between July and November, indicating a contraction in economic activity.
Additionally, the authority pointed to modest growth in the value of imported goods, which rose by just one per cent during the five months.
Imports are a critical source of both raw materials and consumer goods. Further, government austerity measures have limited expenditure on VATable goods, negatively impacting key sectors.
KRA expressed optimism in its ability to maintain the upward trajectory, targeting a total collection of Sh2.704 trillion by the end of the 2024/25 financial year.
"We are confident that we will achieve the set target to enable the government to sustain the country’s economy," the tax authority said.
Reader comments
Follow Us and Stay Connected!
We'd love for you to join our community and stay updated with our latest stories and updates. Follow us on our social media channels and be part of the conversation!
Let's stay connected and keep the dialogue going!
Latest News For You
