The Kenya Revenue Authority (KRA) has announced a significant increase in revenue collection for the financial year 2023/2024, recording a notable 11.1% growth. The total revenue collected amounted to KSh 2.407 trillion, compared to KSh 2.166 trillion in the previous financial year. This translates to a performance rate of 95.5% against the target.
The past year was marked by multiple economic shocks, including the depreciation of key currencies such as the US Dollar, rising interest rates, and increased inflation driven by global supply chain disruptions. These factors impacted revenue mobilization efforts.
Despite these challenges, the KRA achieved 95.8% of its excise revenue target, collecting KSh 2.231 trillion, compared to KSh 2.080 trillion in the previous year. Allocations revenue, collected on behalf of other government agencies, increased by 34.9% to KSh 176.7 billion.
Economic performance indicators also showed positive trends, with a GDP growth of 5.6% in the 2023 calendar year and a 6.0% increase in GDP for the fiscal year 2023/2024, as per the Economic Survey 2024.
Customs and Domestic Taxes departments both showed strong performances. Customs revenue saw a 14.4% increase, reaching KSh 1.661 trillion against a target of KSh 1.677 trillion. Domestic taxes grew by 6.6% to KSh 791.368 billion, meeting 91.6% of the target.
The growth in revenue mobilization is attributed to economic recovery, enhanced taxpayer compliance, tax administration reforms, and digitization initiatives. These efforts, coupled with favorable economic conditions, contributed to the successful collection figures reported by the KRA.
