The Kenya Revenue Authority (KRA) has announced that it collected Ksh2.571 trillion in taxes during the 2024/2025 financial year, marking a 6.8 percent revenue growth despite prevailing economic headwinds.
In a statement issued on Thursday, July 10, the authority hailed the achievement as a milestone in Kenya’s journey toward fiscal sustainability.
“Kenyans paid Ksh2.571 trillion in taxes for FY 2024/2025. This is a remarkable 6.8% growth despite economic challenges! For three decades, you’ve been our partners in nation-building. Every contribution has shaped Kenya’s growth story,” KRA stated.
Domestic Revenue and Customs Collections
The KRA noted that domestic revenue collections grew by 4.8 percent, reaching Ksh1.688 trillion against a target of Ksh1.721 trillion, reflecting a 98.1 percent performance rate.
Meanwhile, customs revenue surpassed its target, with the authority collecting Ksh879.329 billion against a target of Ksh830.368 billion — translating to an 11.1 percent growth compared to the previous financial year.
Sectoral Performance Breakdown
KRA Commissioner General Humphrey Wattanga attributed the growth to improved compliance and strong performance across several sectors, including ICT, manufacturing, financial services, real estate, wholesale, and retail.
In the domestic VAT category, KRA collected Ksh327.336 billion — with Ksh148.374 billion raised in the first half of the financial year and Ksh178.962 billion in the second.
Pay As You Earn (P.A.Y.E) tax brought in Ksh560.963 billion, achieving a 99.0 percent performance rate. The authority noted this represented a 3.3 percent growth, citing continued employer compliance and adaptability to policy and relief changes.
Corporation tax recorded a 9.9 percent growth, doubling the previous year’s 4.9 percent performance.
Impact of Tax Amnesty
KRA also revealed that its Tax Amnesty Program was a success, benefiting over 3.5 million taxpayers. Penalties and interest worth Ksh95.645 billion were waived under the initiative.
Additionally, 116,144 taxpayers voluntarily declared and paid taxes amounting to Ksh29 billion during the amnesty period.
KRA lauded the public for its growing commitment to tax compliance, reaffirming its dedication to fostering a tax system that supports national development and economic resilience.
