The Kenya Revenue Authority’s (KRA) Customs and Border Control (C&BC) Department delivered its strongest performance on record in the last financial year, collecting KSh 879.33 billion and surpassing its target with a 105.9% performance rate.
- •This is an 11.1% growth from the KSh 791.5 billion collected the year before, helping KRA achieve total tax collections of KSh 2.571 trillion, slightly above the KSh 2.555 trillion national target.
- •Customs’ aggressive enforcement measures yielded KSh 549 million in seized illicit goods by June 2025.
- •Notably, enforcement officers intercepted over 40,000 litres of smuggled ethanol concealed within molasses shipments.
The deployment of advanced data analytics, AI-driven scanner image analysis, and enhanced profiling of high-risk imports underpinned these achievements, drastically reducing illicit trade risks.
Non-Oil Taxes Anchor Growth
Non-oil revenue streams were the primary driver of the customs performance, expanding by 10.3% to KSh 541.05 billion. This was supported by robust collections from import duty and excise duty:
- •Import Duty increased by 18.3% to KSh 157.87 billion, buoyed by sharp growth in key sectors such as agriculture (+67%) and steel (+39%).
- •Excise Duty registered a 11.6% growth to KSh 125.3 billion, driven by higher importation volumes in certain product lines.
A significant factor behind the non-oil revenue upturn was the 37.4% reduction in exemptions on critical imports like sugar, rice, and cooking oil, translating into a broader tax base and stronger revenue realization.
Oil Taxes Benefit from Levy Adjustments
Oil taxes recorded a 12.5% growth, hitting KSh 338.28 billion, aided by:
- •Road Maintenance Levy (RML) collections skyrocketing 50.9% to KSh 119.66 billion, following an increase in the levy rate from KSh 18 to KSh 25 per litre.
- •Railway Development Levy (RDL) collections climbing 15% to KSh 36.82 billion.
Further, increased import volumes of key petroleum products sustained the momentum, with petrol imports rising 10.7%, diesel 13.8%, and other oil products including coal and lubricants 13.7%.
Overall, revenue growth was geographically broad-based, but Rift Valley and Western regions stood out with revenue collection growth of 117% and 122%, respectively. Enhanced scrutiny at ports and bonded facilities also paid off, with revenue up 15-17% in these critical nodes.
Complementing revenue growth, the introduction of centralized clearance processes cut cargo clearance time by 62%, from 110 hours to 42 hours, accelerating trade flows and compliance.
Additionally, KRA established three Trade Facilitation Centres in Turkana County (Kainuk, Lodwar, Kakuma), strengthening oversight along the Northern Corridor — a key artery linking Kenya with Uganda, South Sudan, and Ethiopia.
Customs contributed a significant share of this success story, despite external headwinds including a slow import growth rate (0.04%) and suppressed export values (-2.0%).
