The Kenya Revenue Authority (KRA) has crossed the Ksh.2 trillion mark in cumulative revenue collection.
KRA has registered Ksh.2.038 trillion by the close of the third quarter of the Financial Year 2025/26 ending March 31, 2026.
While this falls slightly short of the Ksh2.122 trillion target, it represents a performance rate of 96.1% and an impressive 11.4% growth compared to the Ksh1.829 trillion collected over the same period in the previous financial year, a trajectory that signals both economic resilience and improving tax compliance.
Revenue growth was steady across all three quarters, driven by strong performance in both Domestic Taxes and Customs.
Customs and Border Control emerged as a standout performer, surpassing its target with a 100.9% performance rate and delivering Ksh733.7 billion, a 13.3% jump from the Ksh647.6 billion collected in the same period the previous year.
Domestic taxes remained the single largest contributor, yielding Ksh1.301 trillion between July 2025 and March 2026, representing 10.4% growth.
Agency Revenue, collected on behalf of other government entities, amounted to Ksh204.452 billion against a target of Ksh201.705 billion, reflecting a performance rate of 101.4% and a growth of 10.7%.
Exchequer Revenue, collected on behalf of the National Treasury, stood at Ksh1.834 trillion, representing 11.5% growth over the same period last year.
KRA noted that this performance was achieved against a challenging macroeconomic backdrop characterised by subdued household purchasing power, soft consumer demand, elevated business costs, and continued global trade uncertainty.
However, positive indicators provided some counterbalance, GDP grew at 4.9% in Q3 2025, up from 4.2% in Q3 2024, while the Kenyan shilling averaged Ksh129.23 against the US dollar, an appreciation expected to moderate imported inflation.
Overall inflation stood at 4.4% in March 2026, marginally up from 4.3% in February.
To bolster compliance and widen the tax net, KRA rolled out a raft of innovative initiatives during the period.
The Electronic Tax Invoice Management System (eTIMS) continued to strengthen invoice visibility and curb VAT fraud, while the GavaConnect Developer Portal, KRA’s enterprise API platform, expanded tax administration beyond traditional channels by allowing businesses, fintechs, and ERP providers to embed tax services directly into their systems.
The platform has onboarded over 2,500 developers, creating what KRA describes as a scalable digital compliance ecosystem.
In a notable move to democratise tax filing, KRA unveiled a WhatsApp-based tax filing service powered by an AI chatbot named “Shuru,” enabling taxpayers to file returns, generate invoices, and obtain compliance certificates through the popular messaging application.
The Centralized Release Office further enhanced cargo clearance efficiency, contributing to a 16.9% growth in non-oil tax revenue, which surpassed its target by Ksh3.555 billion.
Additionally, KRA deployed body-worn cameras for Customs officers at verification stations, airports, and border points to enhance transparency and integrity, and is adopting a bank agent model to improve service accessibility in areas without physical KRA offices.
With one quarter remaining in the financial year, KRA says it remains focused on closing the gap toward its annual target of Ksh2.97 trillion, intensifying compliance interventions and sustaining the growth momentum already achieved.
