NAIROBI, Kenya — The Kenya Revenue Authority (KRA) recorded its highest-ever monthly tax collection in December 2025, raising Sh251.52 billion in a strong finish to the year.
The figure represents a 15.9 per cent increase compared to December 2024 and exceeds the previous monthly record of Sh246.36 billion set in June 2025, underscoring the impact of intensified enforcement and compliance measures rolled out in the final quarter.
The surge followed a series of administrative and policy interventions. In November, KRA introduced automated tax payment plans, allowing taxpayers to settle outstanding liabilities in instalments of up to six months.
Earlier in September, the authority rolled out the Electronic Rental Income Tax System (eRITS) as part of a broader push to widen the tax base, with the government targeting Sh100 billion annually from rental income taxation.
In October, KRA further tightened compliance by making eTIMS registration mandatory for issuance of a Tax Compliance Certificate (TCC), while elevating the VAT Special Table as a key criterion in approving TCC applications.
The changes are believed to have driven many businesses to regularise their tax affairs, given the importance of TCCs in securing contracts and operating legally.
On the wider Exchequer performance in December, non-tax revenue amounted to Sh39.93 billion, while domestic borrowing reached Sh47.77 billion.
External loans and grants contributed Sh4.94 billion, alongside Sh15.18 billion from other domestic financing sources.
Government expenditure during the month saw recurrent spending rise to Sh214.57 billion, while development expenditure stood at Sh23.2 billion.
Counties received Sh35.28 billion as equitable share, and public debt servicing consumed Sh75.84 billion.
The strong revenue performance comes as the government seeks to stabilise public finances amid rising expenditure pressures and debt obligations.
