Kenya Revenue Authority (KRA) has defied tough economic conditions and surpassed its annual target after collecting Sh2.57 trillion in the 2024/25 financial year.

Despite rising costs of living and slowdowns in key sectors, the authority beat its set goal of Sh2.55 trillion and posted a 6.8 percent growth from the previous year’s Sh2.40 trillion. This marks a performance rate of 100.6 percent.

In a statement released on July 10, KRA confirmed the outcome.

“The Kenya Revenue Authority (KRA) has surpassed the revenue target of Sh2.55 trillion for the Financial Year 2024/2025 after collecting Sh2.57 trillion.”

The achievement comes as the authority marks 30 years since its formation.

“For three decades, you've been our partners in nation building. Every contribution has shaped Kenya's growth story. Together, we've built more than revenue; we've built Kenya's future. Asanteni Wakenya kwa Miaka 30 ya Ushirikiano!”

KRA attributed the strong showing to improved tax compliance, a 4.7 percent GDP growth, and better performance in agriculture, transport, financial services, real estate, and insurance.

Several tax categories showed solid growth, though a few still fell slightly short of targets.

Pay As You Earn (PAYE) tax brought in Sh560.96 billion, up 3.3 percent. However, this fell short of the full-year target, closing at 99 percent performance.

“The slow growth was attributed to utilisation of adjustment vouchers by taxpayers to offset tax liabilities and policy impacts, which included adjustment of SHIF and Housing Levy from relief to allowable deductions before tax computation,” the statement noted.

Domestic VAT rose to Sh327.33 billion, a 4.2 percent increase, while Corporation Tax grew by 9.9 percent to hit Sh304.83 billion. Gains were supported by growth in ICT, manufacturing, wholesale and retail, financial services, and real estate.

Customs Revenue stood out with a performance rate of 105.9 percent, collecting Sh879.32 billion against a target of Sh830.36 billion. This translated to an 11.1 percent year-on-year growth.

KRA also reported Domestic Revenue of Sh1.68 trillion, which reflected a 4.8 percent increase but still missed the Sh1.72 trillion target, closing at a 98.1 percent rate.

Total Exchequer revenue stood at Sh2.32 trillion, up 4.5 percent. In addition, Sh248.27 billion was collected on behalf of other government agencies.

In the betting industry, Excise Tax collections hit Sh13.23 billion, surpassing the target by Sh1.945 billion. Betting Tax also closed higher at Sh5.70 billion, exceeding the target of Sh5.49 billion.

However, Domestic Excise Duty came in lower than expected, collecting Sh69.38 billion and ending the year at 97.2 percent performance. This was mainly due to a 13.9 percent drop in beer manufacturers’ remittances and an 8.9 percent decline from tobacco companies.

Despite missed targets in a few areas, KRA’s overall performance was strong across most tax heads. The authority credited this outcome to collaborative efforts with taxpayers and continued reforms in tax collection and administration.