KRA Records Double-Digit Revenue Growth as Tax Collections Reach Sh2.84 Trillion

The Kenya Revenue Authority posted strong revenue growth in the 2025/26 financial year. Tax collections rose 10.6 percent to Sh2.84 trillion, with customs revenue exceeding its annual target.

The revenue increase was driven by strong performance in the manufacturing, energy, financial services, information and communication, and wholesale and retail trade sectors, which together accounted for about 62 percent of total collections.

Manufacturing contributed Sh462 billion, up from Sh423 billion, while the energy sector generated Sh445 billion, largely supported by higher customs and oil tax collections.

Financial and insurance activities contributed Sh320 billion, while the information and communication sector generated Sh248 billion. Revenue from wholesale and retail trade also rose 10.3 percent to Sh288 billion.

Revenue collected on behalf of the National Government through taxes, duties and fees increased by 10.5 percent to Sh2.56 trillion, while agency revenue grew by 11.2 percent to Sh276.1 billion.

Customs collections reached Sh988.78 billion against a target of Sh980.79 billion, translating to 100.8 percent performance. Meanwhile, PAYE revenue increased by 6.7 percent to Sh598.8 billion, while domestic VAT collections rose 8.5 percent to Sh355.25 billion.

KRA attributed the improved performance to enhanced tax compliance measures and digital tax administration reforms, which are aimed at increasing domestic revenue, supporting government expenditure and reducing reliance on borrowing.