KRA Collects Past The Target to Hit Sh2.57 Trillion in Tax Revenue

The Kenya Revenue Authority (KRA) has announced it collected Ksh 2.571 trillion in taxes from Kenyans in the 2024/2025 financial year.

Despite the economic challenges in the 2024/25 financial year, the KRA recorded a 6.8 per cent growth in its revenue. This figure surpasses the set target of Sh2.55 trillion.

“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,” read part of a statement released by KRA on July 10.

The authority also highlighted the prevailing economic indicators, especially the Gross Domestic Product (GDP) growth of 4.7 per cent and growth recorded in key sectors, including agriculture, forestry and fishing, financial and insurance activities, transportation and storage, and real estate.

KRA reported that domestic revenue collection grew by 4.8%, reaching Ksh 1.688 trillion against a target of Ksh 1.721 trillion, representing a performance rate of 98.1%. The authority collected Ksh 879.329 billion against a target of Ksh 830.368 billion in customs revenue.

“Pay As You Earn (P.A.Y.E) remained a strong pillar of revenue performance, collecting KSh. 560.963 billion and achieving a remarkable 99.0% performance rate. This 3.3% growth reflects continued employer compliance and resilience despite policy shifts and relief adjustments,” KRA stated.

Corporation tax, on the other hand, grew by 9.9% compared to 4.9% in the last financial year.

Furthermore, KRA announced that 3,512,835 taxpayers benefited from the Tax Amnesty Programme, with Ksh 95.645 billion in penalties and interest waived. The programme also resulted in the collection of Ksh29 billion, with 116,144 taxpayers voluntarily declaring and paying their taxes.

Despite several policy and economic hurdles, the authority maintained a strong performance across most tax categories, signalling continued resilience in revenue collection and administration.