KRA Collects Sh1.01tn in First Four Months of 2026/27 Financial Year

The Kenya Revenue Authority (KRA) has collected Sh1.01 trillion in the first four months of the 2026/27 financial year, achieving the target a month earlier than in previous financial years. This milestone was reached after collecting Sh260.63 billion in October, exceeding the monthly target of Sh258.30 billion. The Authority attributed the performance to higher collections from both customs and domestic taxes.

KRA's October collections grew by 15.5 percent compared to the same month last year, when revenue growth stood at 8 percent. In October 2024, growth was 6.5 percent. The significant increase in revenue collection is a positive indicator for the Kenyan economy. Customs revenue reached a record Sh94.79 billion in October, surpassing its target by Sh1.01 billion and representing an 11.3 percent increase from October last year.

Non-oil taxes drove the customs performance, recording a surplus of Sh7.24 billion and growth of 26 percent. Domestic revenue collections stood at Sh165.45 billion against a target of Sh164.11 billion, exceeding the target by Sh1.34 billion. The collections grew by 18.1 percent compared to October 2025. This growth in domestic revenue is a result of improved economic activity and enhanced tax compliance.

Corporation Tax recorded the strongest performance among the key domestic tax categories, with collections of Sh23.93 billion against a target of Sh20.08 billion. This represented a 119.2 percent performance rate and growth of 31.6 percent. The electricity, manufacturing, transport, and wholesale sectors accounted for about 81 percent of Corporation Tax collections during the month.

Domestic Excise Duty also exceeded its target for the first time in a long period, collecting Sh945 million above target and recording growth of 54.1 percent. The increase was supported by higher remittances from manufacturers of beer, wine, spirits, and tobacco. However, collections from soft drinks and bottled water manufacturers declined by 4.8 percent and 96.4 percent, respectively.

Domestic Value Added Tax (VAT) collections reached Sh33.37 billion, slightly above the Sh33.32 billion target, representing growth of 22.1 percent. KRA is targeting total revenue collections of Sh3.268 trillion by the end of the 2026/27 financial year. Achieving this target will require sustained efforts to enhance tax compliance and address emerging challenges in revenue collection.

The Kenya Revenue Authority's performance in the first four months of the 2026/27 financial year is a positive indicator of the country's economic growth. The Authority's efforts to enhance tax compliance and improve revenue collection have yielded results. Key to this success has been the growth in customs and domestic taxes, driven by improved economic activity and enhanced tax compliance.

Key points

• KRA collected Sh1.01 trillion in the first four months of the 2026/27 financial year, beating the monthly target.
• October collections grew by 15.5 percent compared to the same month last year.
• Corporation Tax recorded the strongest performance among domestic tax categories, with collections of Sh23.93 billion.