The Kenya Revenue Authority (KRA) has announced a remarkable performance by its Customs and Border Control (C&BC) Department, which surpassed expectations by collecting Ksh 879.329 billion in the 2024/25 Financial Year. This represents an 11.1% growth in revenue over the previous year and a performance rate of 105.9%, signaling one of the strongest customs revenue performances in recent years.
With an average daily collection of Ksh 3.546 billion, the customs department’s stellar performance reinforces the agency’s growing effectiveness in tax administration, enforcement, and trade facilitation across the country.
The C&BC department’s impressive performance was driven by strong growth across both oil and non-oil tax streams:
- Non-Oil Revenue: Rose by 10.3% to reach Ksh 541.053 billion
- Oil Taxes: Increased by 12.5% to hit Ksh 338.276 billion
KRA also reported a historic monthly high in January 2025, with collections reaching Ksh 82.554 billion and a quarterly performance rate of 109.2%, reflecting heightened economic activity and tighter compliance mechanisms.
- Import Duty: Grew by 18.3% to Ksh 157.87 billion, led by:
- Agriculture Sector (+67%)
- Steel Sector (+39%)
- Excise Duty: Rose by 11.6% to Ksh 125.3 billion
- Railway Development Levy (RDL): Up 15% to Ksh 36.82 billion
- Road Maintenance Levy (RML): Jumped 50.9% to Ksh 119.662 billion
This was driven by:- Rate Increase: From Ksh 18 to Ksh 25 per litre
- 13% Growth in oil volumes, especially:
- Petrol: +10.7%
- Diesel: +13.8%
- Other Oil Products: +13.7%
Additionally, a 37.4% drop in import exemptions (for products like sugar, rice, and cooking oil) contributed significantly to non-oil revenue growth.
KRA intensified its enforcement efforts during the year, resulting in:
- Seizure of illicit goods worth Ksh 549 million
- Over 40,000 litres of smuggled ethanol intercepted in disguised molasses shipments
- Enhanced use of data analytics and scanning technology for risk profiling and taxpayer monitoring
This crackdown yielded record revenue growth in the regions:
- Western Region: +122%
- Rift Valley Region: +117%
- Ports and Bonded Facilities: +15% and +17% growth respectively
Motor vehicle imports also came under tighter scrutiny, contributing to a 0.8% increase in revenue per vehicle.
The customs authority also made major strides in improving logistics efficiency:
- Centralized Clearance reduced average cargo clearance time from 110 hours to just 42 hours – a 62% time improvement.
- Three New Trade Facilitation Centres were opened in:
- Kainuk
- Lodwar
- Kakuma (Turkana County)
These centres enhance the Northern Corridor trade route, which links Kenya to South Sudan, Ethiopia, and Uganda, improving cross-border movement and boosting regional commerce.
KRA’s Customs and Border Control Department is expected to remain a key pillar of Kenya’s revenue mobilization strategy, especially as the government looks to expand infrastructure and social programs funded by domestic resources.
The 2024/25 performance also places KRA in a stronger position to meet broader fiscal targets, maintain border security, and continue fighting illicit trade while facilitating compliant businesses.
