KRA collects Sh1.243 trillion in revenue amid economic challenges
The Authority noted that this surpassed the target of Sh101.316 billion, with Agency revenue performing at 121.3 per cent of the target.
The Kenya Revenue Authority (KRA) collected Sh1.243 trillion as of December 31, 2024, amid economic challenges.
In a statement on Tuesday, KRA said this reflected a growth of 4-5 per cent compared to Sh1.189 trillion collected in the same period the previous financial year 2023/2024.
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Of the total collection, Sh1.120 trillion was Exchequer revenue, collected on behalf of the National Treasury, while Sh122.872 billion was Agency revenue, collected on behalf of other government entities.
The Authority noted that this surpassed the target of Sh101.316 billion, with Agency revenue performing at 121.3 per cent of the target.
Despite the positive growth, KRA said the collection was affected by various economic factors.
“The GDP growth slowed to 4.0 per cent in the third quarter of 2024, down from 6.1 per cent in the third quarter of 2023 and 4.6 per cent in the second quarter of 2024,” KRA said.
The report also highlighted subdued domestic demand, as indicated by the Purchasing Managers Index (PMI), which averaged 49.2 points between July and December 2024, signifying a contraction in economic activity.
“This is also reflected in the decline in overall import values, which decreased by 0.6 per crin the first half of the 2024/25 financial year, a key source of raw materials and consumer goods,” the Authority said.
KRA also pointed out that the government’s austerity measures on VATable goods, aimed at reducing public expenditure, hurt revenue collection.
“The government, as a major consumer of VATable goods, applied austerity measures that adversely affected various key sectors over time,” KRA said.
For the cumulative period of July to December 2024, the Authority also reported that customs revenue collection amounted to Sh429.127 billion, showing a growth of 4.8 per cent from Sh409.548 billion during the same period in the previous financial year.
Domestic taxes amounted to Sh811.847 billion, reflecting a growth of 4.4 per cent from Sh777.617 billion during the same period in 2023.
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