KRA

KRA’s Customs Has Been Collecting Ksh 3.5 Billion Daily

KRA’s Customs and Border Control (C&BC) Department recorded an accelerated growth rate of 11.1% in revenue collection over the previous year’s growth rate of 4.9% to collect Kshs. 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 Kshs. 3.546 Billion.

C&BC performance was driven by Non-Oil taxes, which grew by 10.3% to Kshs. 541.053 Billion and Oil Taxes, which grew by 12.5% to Kshs. 338.276 Billion.

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

Import Duty grew by 18.3% to Kshs. 157.870 Billion, with the agriculture and steel sectors leading with growths of 67% and 39% respectively. Excise Duty similarly grew by 11.6% to Kshs. 125.300 Billion.

Railway Development Levy (RDL) collection grew by 15.0% to Kshs. 36.820 billion while Road Maintenance Levy (RML) grew by 50.9% to Kshs. 119.662 Billion. The growth in RML is attributed to an increase in the applicable rates from Kshs. 18 per litre to Kshs. 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 for Non-Oil revenue streams.

KRA undertook enhanced customs enforcement measures, which resulted in the interception of illicit goods valued at Kshs. 549 million as at the end of June 2025. This was achieved on the back of stringent scanning of imports and the 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.

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. Similarly, 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 the 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.

Related Content: KRA Dismisses Claims of Delayed Service Delivery At Eldoret Depot, Attributes Glitch To KPC System Rollover

Business Watch Team

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