Kenya: KRA customs department posts 11.1% revenue growth with KES 879.3bn collection

By: 

Expression Africa

KRA’s Customs and Border Control department recorded an accelerated growth rate of 11.1% in revenue collection over the previous year’s growth rate of 4.9% to collect KES 879.329 billion.

This denotes a performance rate of 105.9% at the close of the 2024/2025 financial year, translating to an average daily collection of KES 3.546 billion.

The Customs and Border Control department’s performance was driven by non-oil taxes which grew by 10.3% to KES 541.053 billion and oil taxes which grew by 12.5% to KES 338.276 billion.

Notably, customs revenue performance during the third quarter stood at 109.2% with a historic high collection of KES 82.554 billion in January 2025 and a performance rate of 121.1%.

Import duties grew by 18.3% to KES 157.870 billion, with the agriculture and steel sectors leading with growth of 67% and 39% respectively. Excise duty similarly grew by 11.6% to KES 125.300 billion.

Railway Development Levy (RDL) collections grew by 15.0% to KES 36.820 billion while the Road Maintenance Levy (RML) grew by 50.9% to KES 119.662 billion.

The growth in RML is attributed to an increase in the applicable rate from KES 18 per litre to KES 25 per litre. Further, oil volumes notably grew by 13.0% in July-June 2024/25 mainly from petrol, diesel, and other oil products (coal, electrical energy, lubricating greases, etc.) which grew by 10.7%, 13.8% and 13.7% respectively.

There was a notable 37.4% overall reduction in exemptions on imports (sugar, rice, and cooking oil) which pushed up collection from non-oil revenue streams.

KRA undertook enhanced customs enforcement measures, which resulted in the interception of illicit goods valued at KES 549 Million as at the end of June 2025.

This was achieved on the back of stringent scanning of imports and use of data analytics in risk management and profiling of taxpayers. Among the notable enforcement actions taken during financial year 2024/25 was the seizure of over 40,000 litres of smuggled ethanol concealed in as imported molasses.

Enforcement efforts against contraband imports, sealing of loopholes for illicit trade, and increased focus on trade facilitation resulted in a record growth in revenue collection against targets, particularly in the Western and Rift Valley regions where revenue collection more than doubled by 122% and 117% respectively.

In a similar fashion, the ports and bonded facilities collection recorded 15% and 17% respectively in terms of growth.

Enforcement measures on motor vehicle imports have also resulted in a 0.8% increase in revenue per motor vehicle.

The introduction of centralized clearance processes further resulted in a 62% reduction in time taken to clear cargo from 110 hours to 42 hours.

During 2024/25 financial year, KRA established three trade facilitation centers in Kainuk, Lodwar, and Kakuma areas in Turkana County to enhance trade facilitation efforts along the Northern Corridor, a critical trade route linking Kenya with South Sudan, Ethiopia, and Uganda.

Hot this week

Kenya tops DDoS threat list in East Africa – NETSCOUT Threat Intelligence Report

According to the results analysed from the release of...

Kenya: Meta partners with Safaricom to land new submarine cable

Meta has entered a deal with Safaricom to bring...

Stanbic Bank facilitates $45m cross-border financing to boost PepsiCo Bottlers’ growth in East Africa

Stanbic Bank Kenya and Stanbic Bank Uganda, both members...

Businesses flock to Ethiopia’s newly-opened banking market

Ethiopia’s banking market, once sealed off to foreign participation,...
spot_imgspot_imgspot_img

Related Articles

Popular Categories

spot_imgspot_imgspot_imgspot_img