The Kenya Revenue Authority (KRA) has recorded a strong revenue performance after collecting Sh1.01 trillion in the first four months of the 2026/27 financial year, achieving its cumulative target a month earlier than in previous financial years. The milestone reflects growing momentum in the country’s revenue mobilisation efforts under President William Ruto’s administration, as the government continues implementing measures to strengthen public finances, improve tax compliance and expand economic activity.
The impressive performance was further demonstrated in October, when KRA collected Sh260.63 billion against a monthly target of Sh258.30 billion, representing a 100.9 per cent performance rate and a surplus of Sh2.33 billion. The achievement signals improved revenue collection efficiency and demonstrates the authority’s increasing capacity to meet and surpass its targets despite the economic and operational challenges associated with revenue mobilisation.
October’s collections also registered a 15.5 per cent growth compared to the corresponding month in 2025, when revenue growth stood at 8 per cent. This improvement, compared to the 6.5 per cent growth recorded in October 2024, points to strengthening economic activity and more effective tax administration. The accelerated growth provides an encouraging indication that government efforts to broaden the tax base, enhance compliance and strengthen institutional accountability are beginning to deliver results.
Customs revenue was among the strongest contributors, reaching a record Sh94.79 billion in October and exceeding its target by Sh1.01 billion. The performance represented an 11.3 per cent increase compared to the same period last year. Non-oil taxes were particularly instrumental, recording a surplus of Sh7.24 billion and growth of 26 per cent. The achievement highlights the importance of trade facilitation, improved border controls and efficient customs administration in supporting national revenue generation while creating a more predictable environment for businesses engaged in international trade.
Domestic revenue collections equally demonstrated positive momentum, reaching Sh165.45 billion against a target of Sh164.11 billion, representing an excess of Sh1.34 billion and growth of 18.1 per cent compared to October 2025. Corporation Tax delivered an especially impressive performance, collecting Sh23.93 billion against a target of Sh20.08 billion, equivalent to 119.2 per cent achievement and growth of 31.6 per cent. The electricity, manufacturing, transport and wholesale sectors accounted for approximately 81 per cent of Corporation Tax collections, demonstrating their contribution to the country’s economic and fiscal performance.
Domestic Excise Duty also exceeded its target for the first time in a prolonged period, collecting Sh945 million above expectations and registering growth of 54.1 per cent. Increased remittances from manufacturers of beer, wine, spirits and tobacco supported the performance, although collections from soft drinks and bottled water manufacturers declined. Meanwhile, Domestic Value Added Tax collections reached Sh33.37 billion against a target of Sh33.32 billion, representing growth of 22.1 per cent. These results demonstrate the contribution of different economic sectors to government revenue and the importance of strengthening compliance across the domestic tax system.
The latest figures provide a positive assessment of the government’s broader economic management and revenue mobilisation agenda. Under President Ruto, the administration has prioritised improving domestic resource mobilisation, strengthening tax administration and reducing reliance on excessive borrowing to finance development programmes. Improved revenue performance creates greater fiscal room for investment in infrastructure, affordable housing, healthcare, education, agriculture and other priority sectors under the government’s development agenda. It also strengthens the capacity of the government to meet its financial obligations and support essential public services.
With KRA targeting total revenue collections of Sh3.268 trillion by the end of the 2026/27 financial year, the early achievement of its cumulative target provides a promising foundation for the remaining months. Sustaining this momentum will, however, require continued efficiency, stronger compliance, expansion of the formal economy and a supportive business environment. The October performance is an encouraging indication that Kenya’s revenue collection systems are gaining traction, reinforcing the government’s determination to strengthen public finances and fund national development through improved domestic revenue mobilisation.
