The Kenya Revenue Authority (KRA) has achieved a historic milestone, collecting KES 34.552 billion in VAT revenue in January 2025, the highest monthly figure in its history. This marks a 12.8% increase compared to the same period in the previous financial year.
According to KRA, the energy and manufacturing sectors played a significant role in this boost. The energy sector saw a 121.6% surge in remittances from oil marketers, while the manufacturing sector reported notable increases from beer (10.5%), soft drinks (115.6%), tobacco (9.5%), sugar (121.5%), and wines & spirits (12.9%).
KRA also surpassed its target for the month, which was set at KES 33.995 billion, collecting an additional KES 556 million and achieving a performance rate of 101.6%.
This positive performance is largely attributed to KRA’s tax reforms and digital innovations. One of the key reforms has been the implementation of VAT Auto-Population of Returns, which simplifies filing by pre-filling VAT returns using integrated data from iTax, TIMS, eTIMS, and customs systems.
According to the statement, “This process simplifies VAT return filing, improves compliance, and enhances the customer experience.” KRA notes that this represents a shift from manual VAT preparation to an automated system, easing the burden on taxpayers.
Looking ahead, KRA plans to explore a fully web-based VAT return system and a taxpayer dashboard to provide real-time views of sales and purchases. These reforms, the authority states, will “enhance transparency, efficiency, and reduce compliance costs while boosting revenue performance.”
