Nairobi: The Kenya Revenue Authority (KRA) has hit the two trillion mark after collecting Sh2.112 trillion as of April 30, 2025. KRA Commissioner General Mr. Humphrey Wattanga said the collection reflects a performance rate of 96.5 percent against the target of Sh2.189 trillion.
According to Kenya News Agency, Wattanga stated that during the period, revenue collection registered a growth of 6.1 percent, reflecting an upward trajectory in collection compared to Sh1.990 trillion realized in the same period during the previous financial year (2023/2024). In the period under review, domestic taxes amounted to Sh1.386 trillion between July-April 2024/25, translating to a revenue growth of 4.7 percent over the Sh1.323 trillion realized in July-April 2023/24.
Wattanga noted that customs revenue collection also grew by 9.1 percent after registering a cumulative collection of Sh722.743 billion, compared to Sh662.447 billion collected in the same period of FY 2023/24. He highlighted that agency revenue collection amounted to Sh205.518 billion, registering a performance rate of 111.8 percent against a target of Sh183.789 billion, representing a growth of 37.1 percent compared to the collection of Sh149.876 billion in the same period of the previous financial year (2023/2024).
According to Wattanga, exchequer revenue amounted to Sh1.906 trillion, reflecting a performance rate of 95.0 percent against a target of Sh2.006 trillion. This represented a growth of 3.6 percent compared to the collection of Sh1.840 trillion in the same period in the previous financial year (2023/2024). He mentioned that the collection was affected by various economic indicators that directly drive revenue collection, including GDP growth and the Purchasing Managers Index (PMI).
Wattanga disclosed that GDP grew at a slower pace of 4.0 percent in the third quarter of the financial year 2024, compared to 6.0 percent during the same period in 2023. Similarly, the PMI averaged 49.8 between July 2024 and April 2025, indicating a slowdown in private sector activities. He explained that this subdued demand was further evidenced by a 1.6 percent drop in import values, an important indicator of domestic demand for both raw materials and consumer goods.
Despite a stronger shilling, the value of imports declined, particularly oil which dropped by 10.2 percent. Export earnings also shrank by 3.6 percent, driven by declines in key sectors such as tea and horticulture. Wattanga said that the adverse effects from most of these indicators are beginning to dissipate as they start to experience a turnaround in the recent past.
He also noted that KRA enhanced its compliance through various initiatives, including the implementation of a Centralized Release Office which has significantly improved the efficiency of cargo clearance processes. This reform has positively impacted customs revenue performance, with revenue growth increasing from an average of 7.0% as of the end of January 2025 to 22.6% in March and 14.4% in April 2025.
Wattanga added that the Electronic Rental Income Tax System (eRITS) was recently rolled out to improve tax compliance and convenience for landlords. This digital platform enables landlords and property owners to seamlessly compute, file, and pay Monthly Rental Income (MRI) tax. The Tax Amnesty Programme has also seen strong uptake, generating Sh13.5 billion in revenue between December 2024 and April 2025, while the introduction of the Electronic Tax Invoice Management System (eTIMS) has enhanced the ability to detect and prosecute VAT fraud schemes.
The enhanced Dispute Resolution Framework has expedited the resolution of tax-related disputes, allowing for quicker recovery of revenue previously tied up in legal processes. KRA targets to collect 2.668 trillion by the end of Financial Year 2024/2025 and is confident that it will continue with the upward trajectory to achieve the set target to enable the government to sustain the country’s economy.