Kenya Revenue Authority (KRA) has announced that it collected a record KSh32.1 billion in Value Added Tax (VAT) for the month of May 2025, the highest ever in the country’s history. The revenue milestone comes after several months of intense crackdown on fraudulent VAT refund claims and improved tax compliance systems.
The announcement was made by the Commissioner General of the KRA, Humphrey Wattanga Mulongo, who noted that the achievement followed consistent reforms in the tax administration process. He said the record-breaking collection is a result of the authority’s decision to go tough on fictitious claims, block tax cheats, and expand the tax net through digital monitoring tools.
KRA officials explained that some businesses had been engaging in illegal practices by filing fake VAT refund claims, costing the government billions in lost revenue. Over the last few months, the tax body intensified its audit of refund claims, strengthened real-time invoice tracking through the electronic Tax Invoice Management System (eTIMS), and boosted internal data analytics capacity. These actions helped the agency spot irregularities in declarations and stop payments on suspicious claims.
In his statement, Wattanga said, “We have tightened the noose on fraudulent refund claims and made our systems smarter through digitisation. The May VAT collection of KSh32.1 billion reflects the positive impact of these changes.”
According to KRA data, May 2025’s figure surpassed all previous monthly records. Analysts believe this will help the Kenyan government narrow its budget deficit and increase funds available for critical public services such as health, education, and infrastructure. With VAT being one of the major sources of tax revenue for Kenya, improved performance in this area could also boost the country’s creditworthiness.
Tax experts in Nairobi have applauded the KRA’s efforts but urged the authority to ensure that genuine businesses are not negatively affected by the anti-fraud measures. Speaking to journalists, financial analyst Sarah Gathoni said, “While it’s good that the KRA is eliminating tax cheats, it must balance enforcement with support for compliant businesses who may experience delays in legitimate refund processing.”
The crackdown forms part of the KRA’s larger strategy to increase tax collection and reduce reliance on borrowing. President William Ruto’s government has made revenue mobilisation a top priority to meet growing expenditure demands and reduce Kenya’s public debt burden, which stands at over KSh10 trillion.
In recent months, the KRA has also taken steps to onboard more informal sector players into the tax system. This is expected to improve collections from sectors that have previously operated under the radar. In addition, digital platforms, including e-commerce businesses and ride-hailing services, are being closely monitored to ensure compliance.
The anti-fraud drive has also led to arrests and prosecutions. Several suspects are currently facing charges in court over illegal VAT claims running into hundreds of millions of shillings. The KRA said it will continue to work closely with law enforcement agencies to ensure that tax offenders are punished according to the law.
KRA officials say the reforms will not stop with VAT alone. There are ongoing efforts to improve efficiency across all tax types including income tax, customs duties, and excise. The goal, according to Wattanga, is to build a fair and transparent tax system that supports economic growth and development.
The authority has urged all taxpayers to file correct returns and warned that any attempt to manipulate the system will be met with legal action. It also called on the public to report suspected cases of tax fraud through its anonymous whistleblowing platform.
As Kenya moves into the second half of the year, the KRA is optimistic that the momentum built in the first five months will continue, helping the country achieve its ambitious revenue targets.
