The Kenya Revenue Authority has collected a total of Ksh 1.24 trillion in six months of the year to December 31, 2024 which is a 4.5pc increase when compared to the same period in the previous year.
The half year collection represents 46.3pc of total collection target of Ksh 2.684 trillion in the current 2024/25 financial year.
Latest data by the authority indicates that the six months revenue collection increased by Ksh 54 billion when compared to the same period in the FY2023/24.
“Exchequer revenue (collected on behalf of The National Treasury) collection amounted to Ksh 1.120 trillion while Agency revenue (collected on behalf of other Government entities) amounted to Ksh 122.872 billion, registering a performance rate of 121.3pc against a target of Ksh 101.316 billion,” said the authority.
Despite improvement when compared to the previous period, the authority still missed its revenue collection target which it attributes to various economic indicators that directly drive revenue collection.
“For instance, GDP growth slowed to 4pc in third quarter 2024, down from 6.1pc in third quarter 2023, and 4.6pc in second quarter 2024. Further, low domestic demand was experienced as indicated by the Purchasing Managers Index (PMI) that averaged at 49.2 points in July -December 2024 indicating a contraction in the economic activities,” added KRA.
As a result of reduced demand, KRA says overall import value of goods contracted by 0.6pc in the six months of 2024/25, which is a main source of both raw materials and final consumer goods.
Additionally, austerity expenditure measures by the government which is a key consumer of VATable goods applied negatively affects various key sectors over time.
During the period under review, customs revenue rose by 4.8pc to Ksh 429.127 billion compared to 409.548 billion collected in the same period of FY 2023/24.
On the other hand, domestic taxes grew by 4.4pc to Ksh 811.847 billion from Ksh 777.617 billion realized in July – December 2023.
