KRA Records 6.1% Growth as it Surpasses Ksh2 Trillion in Revenue Collection

The Kenya Revenue Authority (KRA) has announced a total revenue collection of Ksh2.112 trillion by April 30, 2025, representing 96.5% of the Ksh2.189 trillion target for the period.

In a statement on Thursday, May 8, KRA Commissioner General Humphrey Wattanga said the achievement marks a 6.1% increase compared to the Ksh1.990 trillion collected during the same period in the previous financial year.

KRA’s latest figures show significant contributions from domestic taxes, customs, and agency revenue. 

According to the statement, domestic taxes brought in Ksh1.386 trillion between July 2024 and April 2025, reflecting a 4.7% growth from Ksh1.323 trillion collected over a similar period in FY 2023/24. 

Customs revenue followed with Ksh722.743 billion, registering a robust 9.1% increase compared to Ksh662.447 billion in the previous year.

Notably, agency revenue, which includes funds collected on behalf of other government institutions, increased by 37.1% to Ksh205.518 billion.

"This represents a growth of 37.1% compared to the collection of Ksh149.876 billion realized in the same period of the previous financial year,' the statement read.

On the other hand, the exchequer revenue which is collected on behalf of the National Treasury totaled Ksh1.906 trillion, translating to 95% of the set target of Ksh2.006 trillion. 

According to KRA, the exchequer revenue registered a year-on-year growth of 3.6%, up from Ksh1.840 trillion in FY 2023/24.

Nonetheless, KRA acknowledged that economic challenges have affected growth with key economic indicators showing signs of strain.

"The various indicators that influence revenue performance have generally moved contrary to expectations, affecting revenue mobilization. GDP grew at a slower pace of 4.0% in Q3 2024 compared to 6.0% in Q3 2023," the statement added.

In the private sector, KRA said the Purchasing Managers Index (PMI) averaged 49.8 between July 2024 and April 2025, which is below the 50-point threshold that signals expansion.

"This subdued demand was further evidenced by a 1.6% drop in import values, an important indicator of domestic demand for both raw materials and consumer goods," the statement continued.

KRA also stated that despite a policy shift by the Central Bank of Kenya to lower the base lending rate, high commercial bank interest rates continued to impact access to credit.

"Additionally, in spite of the Central Bank of Kenya lowering its base lending rate to 10.75%, commercial Bank lending rates remained high, averaging 17.22%, as a number of banks had yet to adjust the rates.

"This disparity negatively impacted private sector borrowing and investment. However, there are strong indications that most banks are working to others wearing compliance," the statement further read.

Moving forward, KRA has set its sights on a revenue collection target of Ksh2.668 trillion by the end of the 2024/2025 financial year.