Kenya’s revenue performance has recorded a notable boost, with the Kenya Revenue Authority (KRA) collecting Sh2.04 trillion in the nine months to March 31, 2026. This marks an 11.4 percent increase compared to Sh1.829 trillion recorded during a similar period in the previous financial year, reflecting improved tax administration and economic resilience.
The growth underscores steady progress in domestic revenue mobilization, even amid prevailing economic pressures. KRA attributes the rise to enhanced compliance measures, digitization of tax systems, and sustained efforts to widen the tax base across key sectors of the economy.
Domestic taxes remained the backbone of revenue collection, contributing Sh1.3 trillion between July 2025 and March 2026. This segment registered a 10.4 percent year-on-year growth, signaling improved performance in income tax, value-added tax (VAT), and excise duties.
The strong domestic tax performance highlights increased economic activity within the country, alongside tighter enforcement measures by KRA. It also reflects the government’s continued push to reduce reliance on external borrowing by strengthening internal revenue streams.
Customs and border control collections also posted impressive gains, rising to Sh733.7 billion from Sh647.6 billion in the previous year. This represents a 13.3 percent increase, driven largely by improved import volumes, enhanced surveillance, and anti-smuggling operations at entry points.
Additionally, KRA reported that revenue collected on behalf of other government entities reached Sh204.45 billion. This surpassed the target of Sh201.7 billion and recorded a 10.7 percent growth compared to the previous year, demonstrating efficiency in agency revenue collection services.
Revenue collected on behalf of the National Treasury stood at Sh1.834 trillion, translating to a 95.5 percent performance against a target of Sh1.921 trillion. This also represented an 11.5 percent increase compared to the prior year, reinforcing the upward trajectory in tax inflows.
Despite the strong performance, KRA remains slightly below its overall target. However, the authority is optimistic about achieving the full-year goal of Sh2.97 trillion, citing ongoing compliance enhancements, taxpayer engagement, and sustained revenue momentum as key drivers for closing the gap.
