Revenue collected by the Kenya Revenue Authority (KRA) in the five months to last month expanded by 4.3 percent to Sh1 trillion compared to a similar period last year.

Between July and November 2023, the taxman collected Sh963.75 billion, coming on the back of tough economic challenges.

According to KRA, custom taxes grew by 5.9 percent to Sh359.571 billion (July and November this year), with a monthly average collection of Sh70 billion.

Likewise, domestic tax collection stood at Sh643.79 billion, representing a 3.5 percent growth in the review period.

“In spite of the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection,” KRA announced in a statement.

“The various indicators that significantly impact on revenue performance have generally moved contrary to expectations, with adverse impact on revenue mobilization.”

Nonetheless, factors such as low domestic demand, as indicated by the slowed Purchasing Managers Index (PMI) that averaged at 48.94 points in July-November 2024, indicating a contraction in the economic activities, impacted revenue collection.

Additionally, the government, being a key consumer of VAT-able goods, has applied austerity expenditure measures that negatively affected various key sectors over time.

KRA now targets to collect Sh2.704 trillion by the end of Financial Year 2024/2025.