The Kenya Revenue Authority (KRA) has reached a historic milestone, collecting Ksh1.005 trillion as of November 30, 2024.
Alex Mwangi, the Acting Commissioner for Strategy, Innovation, and Risk Management, explained that this achievement represents a significant increase in revenue collection compared to the previous financial year.
In the 2023/2024 fiscal year, KRA reached the Ksh1 trillion mark on December 7, 2023, with a total of Ksh1.009 trillion.
“The revenue collected from July to November 2024 amounts to Ksh1,005.183 billion, reflecting a growth of 4.3% compared to Ksh963.746 billion collected during the same period in the previous year,” Mwangi said.
Despite this positive growth, Mwangi noted that several economic factors had an adverse effect on revenue collection.
“Key indicators that significantly impacted our performance moved contrary to expectations, particularly the low domestic demand, as indicated by the slowed Purchasing Managers Index (PMI), which averaged 48.94 points between July and November 2024. This suggests a contraction in economic activities,” Mwangi explained.
He also pointed out that the modest growth in imports (up by 1.0% in the same period) contributed to the challenges.
Mwangi attributed some of the constraints to the government’s austerity measures, which, while necessary, have impacted key sectors over time.
KRA Commissioner Alex Mwangi.
“However, in a significant achievement, customs revenue continued to surpass the Ksh70 billion mark in the last four months (August-November 2024), contributing to a total of Ksh359.571 billion in customs revenue for the period. This marks a 5.9% growth compared to Ksh339.678 billion collected in the same period of FY 2023/24,” Mwangi said.
Domestic taxes amounted to Ksh643.790 billion from July to November 2024, representing a 3.5% growth from Ksh621.984 billion collected during the same period the previous year.
Mwangi reiterated that KRA is targeting Ksh2.704 trillion in revenue collection by the end of the 2024/2025 financial year.
“We are confident that we will maintain this upward trajectory and meet our target, which will enable the government to sustain the country’s economy,” Mwangi concluded.
