NAIROBI, Kenya- The Kenya Revenue Authority has collected Sh1.010 trillion in the first four months of the 2026/27 financial year, reaching the Sh1 trillion mark a month earlier than in previous financial years.
KRA said its October collection stood at Sh260.630 billion, exceeding the monthly target of Sh258.304 billion by Sh2.327 billion.
The authority said the October performance represented a 100.9 per cent target achievement and a 15.5 per cent growth compared with the same month in the previous financial year.
The growth was higher than the 8 per cent recorded in October 2025 and the 6.5 per cent reported in October 2024.
KRA attributed the performance to stronger collections by both Customs and Domestic Revenue, with Customs recording its highest monthly revenue collection in the authority’s history.
Customs posts historic monthly collection
Customs collected Sh94.793 billion in October, surpassing its previous monthly record of Sh92.527 billion set in July 2026.
The department exceeded its target by Sh1.009 billion, recording a performance rate of 101.1 per cent and growth of 11.3 per cent compared with October last year.
KRA said non-oil taxes were a key driver of the Customs performance, posting a surplus of Sh7.243 billion and growth of 26 per cent.
Domestic revenue collection also beat its monthly target, reaching Sh165.447 billion against a target of Sh164.110 billion.
This represented a surplus of Sh1.337 billion and an 18.1 per cent increase from the corresponding period last year.
KRA said the domestic performance was supported by above-target collections from Domestic Value Added Tax, Domestic Excise Duty, Corporation Tax, Individual Income Tax, Capital Gains Tax and Stamp Duty.
Corporation tax, VAT and excise drive gains
Corporation Tax collected Sh23.932 billion against a target of Sh20.077 billion, translating to a performance rate of 119.2 per cent and growth of 31.6 per cent.
The electricity, manufacturing, transportation and wholesale sectors accounted for about 81 per cent of Corporation Tax collections in October.
Domestic VAT brought in Sh33.367 billion, exceeding the target of Sh33.323 billion by Sh45 million. The tax head recorded growth of 22.1 per cent, with KRA saying domestic VAT growth accelerated in September and October.
Domestic Excise Duty also exceeded its monthly target for the first time in a long period, posting a Sh945 million surplus and growth of 54.1 per cent.
KRA linked the stronger excise performance to higher remittances from manufacturers of premium beer, wine and spirits, and tobacco. Collections from wine and spirits grew by 110.8 per cent, while tobacco remittances increased by 94.1 per cent.
The authority, however, reported a decline in remittances from soft drinks and bottled water manufacturers, with the latter linked to policy changes.
Sh3.268 trillion annual target
The October results place KRA on course towards its Sh3.268 trillion revenue target for the 2026/27 financial year.
The authority said the earlier-than-usual Sh1 trillion milestone reflected an improving revenue mobilisation trend and thanked taxpayers for continued compliance.
KRA said sustained collections would be critical in supporting government spending, economic growth and development programmes.
The strong October performance also underlines the importance of Customs, consumption taxes and corporate earnings in the government’s wider effort to strengthen domestic revenue mobilisation and reduce reliance on borrowing.
