NAIROBI, Kenya — The Kenya Revenue Authority (KRA) has surpassed the Sh2 trillion revenue mark within nine months, collecting Sh2.038 trillion by March 31, 2026, in a performance that underscores steady economic recovery despite prevailing global uncertainties.
According to the agency’s latest revenue performance report, the collection represents a 96.1pc achievement against a target of Sh2.122 trillion and an 11.4pc growth compared to the same period in the previous financial year.
KRA attributed the growth to ongoing reforms aimed at simplifying tax administration, enhancing compliance, and leveraging technology to integrate taxation into everyday economic activity.
“The uptrend signals resilience of the economy and resilience in revenue performance,” the agency said in its press statement dated April 7.
Customs and Border Control emerged as the top-performing segment, collecting Sh733.7 billion and surpassing its target with a 100.9pc performance rate.
The segment recorded a 13.3pc year-on-year growth, reinforcing its role as a key revenue driver.
Domestic taxes remained the largest contributor, generating Sh1.301 trillion between July 2025 and March 2026, reflecting a 10.4pc increase compared to the previous year.
Revenue collected on behalf of government agencies reached Sh204.45 billion, achieving a 101.4pc performance rate and a 10.7pc growth, while exchequer revenue stood at Sh1.834 trillion, representing a 95.5pc performance rate and an 11.5pc increase.
The report indicates that revenue growth was sustained across all three quarters, driven by improved compliance and administrative efficiency, even as the economy faced constrained household purchasing power, soft consumer demand, and global trade uncertainties.
However, analysts warn that the strong performance could face headwinds in the final quarter of the financial year, particularly due to geopolitical instability in the Middle East, which may disrupt import flows—a critical source of customs revenue.
Economic observers note that petroleum imports alone contribute roughly Sh30 billion monthly in taxes and levies, while imports from the Middle East generate approximately Sh273 billion annually, making the region a crucial pillar of Kenya’s revenue base.
Any sustained disruption in these supply chains could slow customs collections and affect overall revenue targets for the 2025/26 financial year.
The performance comes as the government continues to prioritise domestic resource mobilisation to fund public expenditure and reduce reliance on external borrowing, in line with fiscal consolidation policies.
Under Kenya’s public finance framework, anchored in the Constitution and the Public Finance Management Act, revenue collection plays a central role in budget execution, service delivery, and debt sustainability.
