The Kenya Revenue Authority (KRA) has announced a historic milestone in customs tax collection, recording Ksh.82.55 billion in January 2025. This marks the highest monthly revenue collection in the history of customs tax revenues in Kenya.
According to a statement by Customs and Border Control Commissioner Dr. Lilian Nyawanda, the remarkable performance was driven by a series of reforms within the department, particularly the establishment of the Centralised Release Operations. This new system assigns release officers to a central location where customs declarations are randomly allocated for release. The streamlined process has led to a more objective and efficient tax collection mechanism, significantly boosting revenue mobilization efforts.
“Customs kicked off the second half of the 2024/2025 financial year on an upward trajectory after surpassing its January target of Ksh.74.439 billion by collecting a surplus of Ksh.8.116 billion, reflecting a performance rate of 110.9 per cent,” Nyawanda stated. The record-breaking revenue represents a 27.0 per cent growth compared to the 4.8 per cent growth recorded in the first half of the 2024/2025 financial year, covering the period between July and December 2024.
Key contributors to this historic tax performance include the significant rise in non-petroleum taxes and petroleum taxes. Non-petroleum taxes grew by 11.6 per cent compared to January 2024, while petroleum taxes saw an even steeper incline of 55.9 per cent. The surge in petroleum taxes has been attributed to an overall increase in oil volumes, which has substantially boosted revenue inflows.
The exceptional customs tax performance highlights the effectiveness of KRA’s ongoing reforms and strategic initiatives aimed at enhancing efficiency and revenue collection. The Centralised Release Operations, in particular, has introduced a more transparent and accountable system that minimizes bureaucratic inefficiencies and optimizes revenue streams.
Looking ahead, KRA is expected to continue leveraging digital transformation and policy enhancements to maintain and improve revenue collection trends. With the government relying heavily on customs tax revenue to fund critical national projects, these reforms are instrumental in ensuring sustainable economic growth and development.
This record-breaking tax collection not only signals a positive economic trajectory but also underscores the resilience and adaptability of Kenya’s customs and border control operations. As KRA moves forward with its strategic initiatives, the potential for even higher revenue collections remains promising, reinforcing the agency’s commitment to achieving its long-term financial targets.
