he Kenya Revenue Authority (KRA) has exceeded its revenue collection target for the 2024/25 fiscal year, recording Sh2.571 trillion against a target of Sh2.555 trillion. This marks a significant increase from the Sh2.407 trillion collected in the previous year, reinforcing Kenya’s economic resilience and robust fiscal administration amidst a challenging global environment.
KRA attributed the strong performance to a 4.7 percent growth in Gross Domestic Product (GDP), driven by key sectors such as agriculture, financial services, transport, and real estate. The authority noted that favorable macroeconomic indicators, including lower inflation and a stronger Kenya shilling, underpinned this fiscal growth despite global tariff tensions and elevated borrowing costs.
The appreciation of the Kenya shilling—strengthening to an average exchange rate of Sh129.35 against the US dollar from Sh144.10—alongside a 12.5 percent decline in global oil prices, contributed significantly to easing import costs. This, in turn, led to lower local fuel prices—petrol by 11.8 percent and diesel by 12.2 percent—offering relief to consumers and boosting sectoral activity.
Despite the positive trend, KRA acknowledged several headwinds in the first half of the fiscal year. The withdrawal of the Finance Bill 2024, coupled with stagnating import growth at 0.04 percent and declining export values, weighed on revenue performance. Additionally, import values for fuels and lubricants dropped by 16.4 percent, while food and beverage imports fell by 14.6 percent.
Nonetheless, the authority reported a 4.5 percent increase in exchequer revenue, reaching Sh2.323 trillion. Furthermore, collections for other government agencies totaled Sh248.2 billion—exceeding the target by Sh40.4 billion—highlighting KRA’s broader role in facilitating public sector funding.
Overall, domestic revenue grew by 4.8 percent to Sh1.688 trillion, while customs revenue rose by 11.1 percent to Sh879.3 billion, achieving a performance rate of 105.9 percent. These figures reflect Kenya’s continued commitment to revenue mobilization and prudent economic management in pursuit of sustainable growth.
