The Kenya Revenue Authority (KRA) collected Sh1.243 trillion for the first six months of the financial year 2024/25 as of December 31st 2024.
This reflects a growth of 4.5 percent compared to the collection of Sh1.189 trillion realized in the same period of the previous financial year 2023/2024.
KRA Acting Commissioner, Strategy, Innovation and Risk Management, Alex Mwangi explained that exchequer revenue collected on behalf of The National Treasury amounted to Sh1.120 trillion.
He also revealed that Agency revenue collected on behalf of other government entities amounted to Sh122.872 billion, registering a performance rate of 121.3% against a target of Sh101.316 billion.
“In spite of the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection. For instance, Gross Domestic Product (GDP) growth slowed to 4 percent in the third quarter 2024, down from 6.1 percent in third quarter 2023, and 4.6 percent in second quarter 2024,” said Mwangi.
He highlighted that low domestic demand was experienced as indicated by the Purchasing Managers Index (PMI) that averaged at 49.2 points in July - December 2024 indicating a contraction in the economic activities.
According to Mwangi, this is also indicative of the decline in overall import values of goods by 0.6 percent in the six months of 2024/25, which is a main source of both raw materials and final consumer goods.
Mwangi further said that the government being a key consumer of VATable goods applied austerity expenditure measures that negatively affects various key sectors over time.
“Cumulatively (July – December 2024), Customs revenue collection amounted to Sh429.127 billion, a growth of 4.8 percent over Sh409.548 billion realized in the same period of FY 2023/24,” he said.
Mwangi said that domestic taxes amounted to Sh811.847 billion in July - December 2024, translating to a revenue growth of 4.4 percent over Sh777.617 billion realized in July - December 2023.
“Import value declines were recorded from Foods and Beverages (21.5 percent decline), and Fuels and Lubricants (17.7 percent decline). These two broad categories of goods account for slightly over a third of import values,” said Mwangi.
He said that KRA targets to collect Sh2.684 trillion by the end of Financial Year 2024/2025 expressing confidence that they will continue with the upward trajectory and achieve the set target to enable the government to sustain the country’s economy.
