With a target set to collect Sh2.68 trillion for the fiscal year concluding in June 2025, KRA faces challenges as many tax streams remain unresponsive. In the first eight months, KRA gathered Sh360.9 billion in pay-as-you-earn (PAYE) taxes, achieving 92.8 percent of the target, alongside non-oil taxes totaling Sh349.6 billion, or 92.7 percent.
Only oil taxes exceeded their target, with collections amounting to Sh224.9 billion (Sh101.2 percent). Between July 2024 and February 2025, domestic value-added tax (VAT) collections reached Sh236.5 billion, falling short of the target by 3.7 percent. “However, it is important to note that domestic VAT performance in the recent past (November 2024 – February 2025) has shown great improvement, with a performance rate of 99.3 percent on account of successful roll-out of VAT prepopulated returns,” the tax authority remarked.