Hard truths. Bold Insights. Real talk.
This is the first time in five quarters that the tax rate has remained unchanged despite a cut in the CBK’s Central Bank Rate (CBR). The CBK lowered the CBR to 9.25 percent from 9.50 percent on October 7, 2025, extending a monetary policy easing cycle that began in August last year and has reduced the rate by a total of 3.75 percentage points.
The quarterly rate announcement is part of KRA’s ongoing compliance communication meant to help taxpayers, employers, and financial officers adjust their payroll systems.
Speaking at the 2025 KRA Annual Summit in Nairobi, Chairman Ndiritu Muriithi emphasized that embracing modern tools and collaboration is key to building trust and delivering lasting solutions for taxpayers.
Currently, three to five active consolidators operate at the airport, handling about five cargo flights weekly. Ethiopian Airlines flies on Wednesdays and Fridays, Kenya Airways on Thursdays and Fridays, and private charter flights also carry goods.
The iCMS is KRA’s digital platform that integrates all customs procedures into one central system, enabling efficient processing of import and export declarations, cargo management, and payments of duties. It connects KRA with external stakeholders such as traders, shipping lines, and clearing agents, allowing real-time communication and faster service delivery.
The vision is to make KRA services easier, faster, and fairer by leveraging technology through platforms such as iTax and eTIMS, Artificial Intelligence and data analysis.
The record-breaking collection surpassed the monthly target of Sh81.3 billion by Sh3.8 billion, translating to a performance rate of 104.7 percent and marking an impressive 18.8 percent year-on-year growth compared to the same period last yea
In a notice published in the Kenya Gazette, the authority said importers and consignees with overstayed cargo must enter and remove their goods from the depot within 30 days. If they fail to do so, the items will be auctioned between November 10 and 14, 2025, through an online bidding process on KRA’s official portal.
This fresh demand from the tax authority adds to the growing list of problems facing NG-CDF, which is scheduled to be wound up by June 30, 2026, following a court ruling that declared the fund unconstitutional.
According to KRA, the bulk of the collections came from the Digital Service Tax (DST), which was introduced in June 2020 at 1.5 percent of gross turnover before being replaced by the Significant Economic Presence (SEP) Tax.
The tax arrears in question comprise corporate tax, pay-as-you-earn (PAYE), value added tax (VAT), as well as legacy debts, penalties, and accrued interest.
Exemptions cover goods brought in by privileged persons and institutions, as outlined in the Fifth Schedule of the East African Community Customs Management Act (EACCMA) 2004.