Despite the economic challenges in the 2024/25 financial year, the Kenya Revenue Authority (KRA) recorded a 6.8 per cent growth in its revenue, collecting Ksh2.571 trillion from Kenyans.
In a statement on July 10, the authority announced that revenue surpassed its set target of Ksh2.555 trillion for the Financial Year 2024/2025.
"The Kenya Revenue Authority (KRA) has surpassed the revenue target of Ksh2.555 trillion for the Financial Year 2024/2025 after collecting Ksh2.571 trillion," the statement read.
In addition to breaking the target, the taxman also recorded a performance rate of 100.6 per cent, compared with the Ksh2.407 trillion collected in the last financial year.
KRA attributed this growth to the taxpayers, stating, "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."
The authority also highlighted the prevailing economic indicators, especially the Gross Domestic Product (GDP) growth of 4.7 per cent and growth recorded in key sectors, including agriculture, forestry and fishing, financial and insurance activities, transportation and storage, and real estate.
Although KRA collected Ksh560.963 billion from Pay As You Earn (PAYE) tax, signifying a growth of 3.3 per cent and a performance rate of 99 per cent, the authority noted the slow growth, attributing it to adjustments in SHIF and Housing Levy deductions.
"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 read in part.
Domestic VAT collection stood at Ksh327.336 billion, a growth of 4.2 per cent, while the Excise Tax on betting services surpassed the target after registering a surplus of Ksh1.945 billion to close at Ksh13.233 billion. Betting Tax collected also went over its target of Ksh5.495 to record a collection of Ksh5.70 million.
The Domestic Revenue collection, for instance, increased by 4.8 per cent after the collection of Ksh1.688 trillion against a target of Ksh1.721 trillion, with a performance rate of 98.1 per cent.
Customs Revenue also recorded an incredible performance rate of 105.9 per cent with a collection of Ksh879.329 billion against a target of Kshs. 830.368 billion, translating to a revenue growth of 11.1 per cent.
2.323 trillion was collected from exchequer revenue, another growth of 4.5 per cent, while Ksh 248.276 billion was collected on behalf of other government agencies.
Corporation Tax grew by 9.9 per cent after KRA collected Ksh304.833 billion, a collection attributed to a number of sectors, including ICT, manufacturing, financial, real estate, wholesale, and retail, among others.
Domestic Excise Duty, on the other hand, recorded 97.2 per cent performance, with a collection of Ksh69.385 billion, which was attributed to the decline of revenue remittance from manufacturers of beer and tobacco products by 13.9 per cent and 8.9 per cent, respectively.
