The Kenya Revenue Authority (KRA) announced that it has surpassed the KES 1 trillion revenue collection mark by November 30, 2024, reflecting a 4.3% growth in revenue compared to the same period last year.
KRA’s total revenue collection reached Ksh 1.005 trillion, hitting this milestone earlier than the previous financial year, when the authority achieved the same mark on December 7, 2023. According to KRA, domestic taxes contributed KES 643.790 billion during the period from July to November 2024, representing a 3.5% increase over the KES 621.984 billion collected in the same period last year.
“This achievement reflects an upward trajectory in revenue mobilization, even amidst economic challenges such as low domestic demand and slowed growth in import volumes,” noted KRA Commissioner for Strategy, Innovation, and Risk Management.
The Customs Department also demonstrated resilience, collecting an average of KES 70 billion monthly from August to November 2024. Cumulatively, Customs revenue amounted to KES 359.571 billion, a 5.9% increase from KES 339.678 billion collected during the same period in the previous financial year.
KRA identified key challenges to revenue growth, including a slowdown in domestic demand, as indicated by the Purchasing Managers Index (PMI), which averaged 48.94 points between July and November 2024. This contraction is attributed to modest import growth and government austerity measures that have impacted VATable goods.
Despite these challenges, KRA remains optimistic about meeting its annual target of KES 2.704 trillion by the end of the financial year 2024/2025. “We are confident that we will continue on this upward trajectory to achieve the set targets, ensuring sustainable government financing,” the Commissioner stated.
