Kenya’s tax revenue collections have crossed the Ksh 1 trillion mark within the first four months of the 2026/2027 financial year, with the Kenya Revenue Authority (KRA) reporting improved performance across domestic taxes and customs duties.
The authority announced on Thursday, November 5, that it had collected Ksh 1.010 trillion by the end of October 2026, reaching the milestone a month earlier than it did in previous financial years.
The latest figures indicate an improvement in revenue mobilisation, with October recording particularly strong collections from businesses, manufacturers, importers and individual taxpayers.
KRA collected Ksh 260.630 billion during the month, exceeding its target of Ksh 258.304 billion by Ksh 2.327 billion. This represented a performance rate of 100.9 per cent.
The October collections also recorded a 15.5 per cent increase compared to the same month in 2025, when revenue growth stood at 8 per cent. In October 2024, the authority recorded growth of 6.5 per cent.
According to KRA, the improved performance was supported by contributions from its Customs and Domestic Revenue departments, both of which exceeded their respective monthly targets.
Customs recorded its highest monthly revenue collection in the authority’s history, raising Ksh 94.793 billion in October.
The amount surpassed the previous record of Ksh 92.527 billion collected in July 2026, highlighting the department’s improved performance during the period.
Customs exceeded its October target by Ksh 1.009 billion, representing a performance rate of 101.1 per cent and growth of 11.3 per cent compared to the corresponding period in the previous financial year.
KRA attributed much of the improvement to non-oil taxes, which recorded a surplus of Ksh 7.243 billion and growth of 26 per cent.
The performance of the Customs department is significant because taxes collected on imported goods form an important part of government revenue. The latest figures show that this revenue stream contributed substantially to the authority’s overall October performance.
Domestic revenue also recorded an increase, with collections reaching Ksh 165.447 billion against a target of Ksh 164.110 billion.
This represented an additional Ksh 1.337 billion above the monthly target and growth of 18.1 per cent compared to October last year.
Several tax categories contributed to the improved domestic collections, including Value Added Tax (VAT), Excise Duty, Corporation Tax, Individual Income Tax, Capital Gains Tax and Stamp Duty.
Corporation Tax was among the strongest performers, with collections reaching Ksh23.932 billion against a target of Ksh20.077 billion. This represented a performance rate of 119.2 per cent and growth of 31.6 per cent.
Four economic sectors accounted for approximately 81 per cent of Corporation Tax collections during the month. These were electricity, manufacturing, transportation and wholesale trade.
Domestic VAT collections also exceeded the monthly target, bringing in Ksh 33.367 billion against an expected Ksh 33.323 billion. The collections represented growth of 22.1 per cent.
KRA further reported improved performance in Domestic Excise Duty, which exceeded its target for the first time in an extended period.
The tax category recorded a surplus of Ksh 945 million and growth of 54.1 per cent.
The increase was supported by higher remittances from manufacturers of keg beer, premium beer, wine, spirits and tobacco products. Collections from keg beer grew by 0.3 per cent, premium beer by 43.5 per cent, wine and spirits by 110.8 per cent, and tobacco by 94.1 per cent.
However, not all product categories recorded an increase. Remittances from soft drink manufacturers declined by 4.8 per cent, while collections from bottled water manufacturers dropped by 96.4 per cent. KRA attributed the decline in bottled water collections to policy changes.
The latest performance comes as the authority pursues its Ksh 3.268 trillion revenue target for the 2026/2027 financial year.
Crossing the Ksh 1 trillion threshold by October gives KRA an early indication of its progress towards the annual target. However, maintaining the current growth rate will depend on continued performance across the major tax categories during the remaining months of the financial year.
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