Kenya Revenue Authority (KRA) has hit the one trillion mark after collecting KSh 1,005.183 billion in the first five months of the 2024/2025 financial year.
This represents a 4.3% growth in revenue collection compared to the same period in the 2023/2024 financial year where KSh 963.746 billion was collected.
However, the tax man said despite the progressive growth, the collection was affected by various economic indicators, including the significant low domestic demand as indicated by the slowed Purchasing Managers Index (PMI) that averaged at 48.94 points in July- November 2024.
KRA also noted that the government had applied austerity expenditure measures, being a key consumer of VATable goods, that negatively affected various key sectors.
From the collected revenue, domestic taxes amounted to KSh 643.790 billion in July – November 2024, translating to a revenue growth of 3.5% compared to the KSh 621.984 billion realized in July – November 2023.
KRA targets to collect KSh 2.704 trillion by the end of the financial year 2024/2025, a target set by President William Ruto.
The taxman said it is confident that it will continue with the upward trajectory and achieve the set target to enable the government to sustain the country’s economy.
