The Kenya Revenue Authority (KRA) has reported a 9.9% growth in Corporation Tax collections in the Financial Year 2024/2025, an increase from the 4.9% growth recorded in the previous year.
- •The taxman collected Kshs. 304.833 Billion against a target of Kshs. 321.080 Billion.
- •According to the taxman, the growth was driven by robust contributions from key sectors including ICT, manufacturing, financial services, real estate, wholesale, and retail.
- •In the Domestic Excise category, KRA collected Kshs. 69.385 Billion, achieving a performance rate of 97.2%.
The performance was adversely affected by a decline in revenue remittances from manufacturers of beer and tobacco products, which saw reductions of 13.9% and 8.9% respectively.
During the period under review, KRA surpassed the revenue target of Ksh 2.555 Trillion for the Financial Year 2024/2025 after collecting Ksh 2.571 Trillion.
The performance is a growth of 6.8% and a performance rate of 100.6%, compared with the Kshs2.407 Trillion collected in the last financial year.
The revenue performance reflects the prevailing economic indicators especially the GDP growth of 4.7% (Economic Survey) with notable growth recorded in key sectors like agriculture, forestry and fishing, financial and insurance activities, transportation and storage, and real estate.
Overall inflation eased to average at 3.6% in 2024/25 compared to 6.3% in 2023/24, while exchange rate of the Kenya Shilling against the US Dollar strengthened to an average of Kshs 129.35/US$ in the current year under review down from Kshs 144.1 in the previous year.
In addition, international oil prices per barrel dropped by 12.5%, with these factors leading to aggregate downward adjustment of local fuel pump prices for both petrol and diesel by 11.8% and 12.2% respectively.
Tax Amnesty
Through the programme, KRA collected Kshs29 Billion after 116,144 taxpayers voluntarily declared and paid.
