Categories: Business

Record Customs Collections Give Treasury Early Boost in Revenue Drive

Kenya’s Customs and Border Control Department has started the 2026/27 financial year on a strong note. July collections hit a record KSh92.53 billion. The performance exceeded the monthly target and set a new benchmark for customs revenue.

The Kenya Revenue Authority (KRA) said the Customs and Border Control Department collected KSh92.53 billion in July. This surpassed the target of KSh86.16 billion by KSh6.37 billion. The amount was also 15.3 percent higher than the KSh80.29 billion collected in July 2025.

The July performance represented 107.39 percent of the monthly target. It also exceeded the previous record of KSh89.1 billion set in June. The results provided the government with an early revenue boost at the start of the new financial year.

A major contributor was non-oil revenue collection. KRA collected KSh61.50 billion from non-oil sources in July. This marked the first time customs revenue from non-oil sources exceeded KSh60 billion in a single month.

KRA attributed the growth to stronger non-oil collections. The authority also cited improved compliance. Increased use of technology in customs administration further supported the results.

To improve efficiency, KRA has deployed data analytics and digital systems. These tools support cargo risk management and declaration processing. They also strengthen enforcement at key entry points, including the Port of Mombasa.

The Port of Mombasa handles a significant share of Kenya’s imports and regional transit cargo. Improved systems at the port have helped streamline customs operations and revenue collection.

The strong customs performance supports the National Treasury’s revenue targets for the 2026/27 financial year. Treasury aims to raise KSh3.63 trillion in total revenue. This includes KSh2.99 trillion in ordinary revenue and KSh644.8 billion in Appropriations-in-Aid.

The government is also expecting KSh43.6 billion in grants. Achieving the broader revenue target is expected to support public spending and reduce reliance on borrowing.

However, sustaining the current pace of collections will depend on several factors. These include import volumes, economic activity and taxpayer compliance throughout the financial year.

Branislav Opudo

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