The Kenya Revenue Authority (KRA) has reported 11pc rise in customs revenue which surged to Ksh 879.3 billion supported by higher collections from oil and non-oil taxes.
According KRA Commissioner for Customs and Border Control Dr Lilian Nyawanda, the department registered a performance rate of 105.9pct the close of the 2024/2025 financial year, translating to an average daily collection of Kshs. 3.5 billion.
“Customs and Border Control performance was driven by non-oil taxes which grew by 10.3pc to Ksh 541.1 billion and oil taxes which grew by 12.5pc to Ksh 338.3 billion. Notably, customs revenue performance during the third quarter stood at 109.2pc with a historic high collection of Ksh 82.6 billion in January 2025 and a performance rate of 121.1pc,” she said in a statement.
During the period, Import Duty grew by 18.3pc to Ksh. 157.9 billion, with the agriculture and steel sectors leading with growths of 67pc and 39pc respectively. On the other hand, collection from Excise Duty during the fiscal year grew by 11.6pc to Ksh 125.3 billion.
The authority says there was a notable 37.4pc overall reduction in exemptions on imports such as sugar, rice, and cooking oil which pushed up collection for non-oil revenue streams to Ksh 541.1 billion.
The year also saw KRA deploy strict measures to tackle revenue leaks as a result of contrabands goods being imported into the country.
“KRA undertook enhanced customs enforcement measures, which resulted in the interception of illicit goods valued at Ksh 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 that were taken during FY 2024/25 was the seizure of over 40,000 litres of smuggled ethanol concealed in imported molasses,” said Nyawanda.
As a result of the anti-tax evasion measures, KRA says revenue collection from Western and Rift Valley regions more than doubled by 122pc and 117pc respectively. Additionally, ports and bonded facilities collection recorded 15pc and 17pc revenue growth respectively.
“The introduction of centralized clearance processes further resulted in a 62pc reduction in time taken to clear cargo from 110 hours to 42 hours. During FY 2024/25, KRA established three trade facilitation centres 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,” she added.
Enforcement measures on motor vehicle imports have also resulted in a 0.8pc increase in revenue per motor vehicle, the authority stated.
