The Kenya Revenue Authority (KRA) has achieved a historic milestone, with its Customs and Border Control department recording an unprecedented KSh 82.554 billion in revenue for January 2025. This marks the highest monthly performance in the history of KRA Customs, fueled by strategic reforms aimed at enhancing efficiency and revenue collection.
KRA surpassed its January target of KSh 74.439 billion, posting a surplus of KSh 8.116 billion—representing a stellar performance rate of 110.9 percent. This figure reflects a remarkable 27.0 percent growth compared to the same period last year, significantly outperforming the modest 4.8 percent growth recorded in the first half of the 2024/2025 financial year (July–December 2024).
The record-breaking performance has been largely attributed to transformative reforms within the Customs department. Key among these is the establishment of the Centralised Release Operations (CRO), a game-changing initiative designed to streamline customs declaration processing. Under the CRO, release officers are stationed in a centralized location where customs declarations are randomly allocated for release. This has minimized human bias, strengthened risk management, and improved overall revenue mobilization efforts.
KRA’s performance was bolstered by impressive growth in both non-petroleum and petroleum tax segments. Non-petroleum taxes grew by 11.6 percent compared to January 2024, reflecting strong economic activity and improved compliance levels.
However, the standout performer was petroleum taxes, which surged by 55.9 percent year-on-year. This growth was largely driven by a 6.6 percent increase in overall oil volumes, with petrol and diesel experiencing remarkable growth rates of 89.7 percent and 65.0 percent, respectively. The spike in oil volumes translated into above-target collections across various tax heads, including VAT on oil, excise duty on oils, and fuel levies such as Petroleum Development Levy (PDL), Railway Development Levy (RDL), and Petroleum Regulatory Levy (PRL).
Commenting on the milestone, Dr. Lilian Nyawanda, Commissioner for Customs & Border Control, emphasized that the impressive revenue performance reflects KRA’s unwavering commitment to enhancing revenue mobilization.
“These results are a testament to the effectiveness of our reforms and the dedication of our team. We are committed to sustaining this momentum and ensuring that we consistently meet—and surpass—our revenue targets. This is critical for supporting Kenya’s economic growth and stability,” Dr. Nyawanda stated.
As KRA kicks off the second half of the 2024/2025 financial year on a high note, the authority remains focused on implementing more reforms, enhancing compliance, and driving sustainable revenue growth to support national development priorities.