The Kenya Revenue Authority (KRA) has achieved a historic milestone by surpassing the Ksh 1 trillion revenue collection mark earlier than expected.
As of November 30, 2024, KRA collected Ksh 1.005 trillion, a notable improvement from December 7, 2023, when the same target was reached last year.
This marks a 4.3% growth in revenue for the first five months of the 2024/25 fiscal year, compared to the Ksh 963.746 billion collected during the same period in 2023.
Domestic Taxes Drive Revenue Growth
A major contributor to this success is the strong performance of domestic taxes, with KRA collecting Ksh 643.79 billion between July and November 2024. This represents a 3.5% increase compared to the Ksh 621.984 billion collected during the same period last year.
Customs and Border Control: A Revenue Powerhouse
KRA’s customs revenue has also shown impressive growth, consistently surpassing Ksh 70 billion per month from August to November 2024.
- Between July and November 2024, customs revenue totaled Ksh 359.571 billion, reflecting a 5.9% increase compared to the previous year.
- This sustained performance highlights KRA’s commitment to enhancing trade facilitation and border controls.
Tax Reforms Powering Efficiency
In 2024, KRA introduced reforms and innovations to enhance tax compliance and streamline processes:
- Enhanced Technological Integration
- Systems like iTax and the Integrated Customs Management System (iCMS) were upgraded to make tax compliance easier and more accessible.
- Future plans include introducing advanced systems to further support taxpayers.
- Rigorous Taxpayer Audits
- Increased staff recruitment and training have enabled KRA to conduct more frequent compliance checks at business premises.
- Widening the Tax Base
- By targeting previously untapped revenue streams, KRA has successfully broadened its tax base.
