The Kenya Revenue Authority (KRA) has announced a substantial increase in tax revenue, collecting Sh2.04 trillion in the nine months leading up to March 31, 2026. This figure represents an 11.4 percent rise compared to the Sh1.829 trillion collected during the same period in the previous financial year.
Domestic taxes accounted for Sh1.3 trillion of the total revenue, reflecting a year-on-year growth of 10.4 percent. Additionally, customs and border control collections rose to Sh733.7 billion, marking a 13.3 percent increase from Sh647.6 billion in the previous year.
Furthermore, KRA collected Sh204.45 billion on behalf of other government entities, exceeding the target of Sh201.7 billion. Revenue collected on behalf of the National Treasury reached Sh1.834 trillion, achieving 95.5 percent of the target set at Sh1.921 trillion.
Despite these gains, KRA fell short of its collection target of Ksh 2.12 trillion for the period, realizing a performance rate of 96.1 percent. The authority has been assigned a more ambitious target of Ksh 2.97 trillion for the entire 2025/26 financial year.
To meet this target, KRA faces a significant gap of approximately KSh 932 billion that needs to be raised in the final quarter. The growth in revenue has been attributed to improved compliance and the implementation of digital reforms.
Humphrey Wattanga, a KRA spokesperson, noted, “Revenue collection maintained steady quarter-on-quarter growth across all three quarters, indicating improving compliance consistency and gradual strengthening in economic activity.” He further emphasized that this resilience demonstrates continued taxpayer responsiveness and expanding compliance.
Economic indicators also reflect a positive trend, with economic growth improving to 4.9% in the third quarter of 2025, while inflation stood at 4.4% in March 2026. These factors may contribute to the ongoing efforts by KRA to enhance revenue collection.
As KRA continues to adapt to changing economic conditions, further developments in revenue collection strategies are anticipated. Details remain unconfirmed regarding the specific measures that will be implemented to bridge the existing revenue gap.
