The Kenya Revenue Authority (KRA) has crossed the Ksh2 trillion revenue collection mark, signalling steady growth in tax performance despite a challenging economic environment.
By the close of the third quarter of the 2025/26 financial year on March 31, KRA had collected Ksh2.038 trillion against a target of Ksh2.122 trillion. This translates to a performance rate of 96.1 per cent and an 11.4 per cent increase compared to the same period in the previous financial year.
KRA Commissioner General Humphrey Wattanga attributed the improved performance to ongoing institutional reforms aimed at enhancing compliance and expanding digital tax systems. He noted that the consistent upward trend from Ksh1.829 trillion collected during a similar period in 2024/25 reflects both resilience in the economy and improved revenue mobilisation strategies.
According to Wattanga, revenue collection recorded steady growth across all three quarters, pointing to improving compliance levels and gradual recovery in economic activity. He said the gains were supported by both Domestic Taxes and Customs revenue streams.
Customs and Border Control emerged as a key driver, surpassing its target with a 100.9 per cent performance rate after collecting Ksh733.7 billion. This marked a 13.3 per cent growth compared to Ksh647.6 billion collected during the same period last year.
Domestic Taxes remained the largest contributor, generating Ksh1.301 trillion between July 2025 and March 2026, representing a 10.4 per cent growth. Meanwhile, agency revenue collected on behalf of other government entities stood at Ksh204.452 billion, exceeding its target and reflecting a 10.7 per cent increase.
Exchequer revenue collected for the National Treasury reached Ksh1.834 trillion, a performance rate of 95.5 per cent, and an 11.5 per cent growth from the previous financial year.
Wattanga noted that the revenue gains were achieved despite prevailing economic pressures, including high business costs, subdued consumer demand and global trade uncertainties. However, positive indicators such as a 4.9 per cent GDP growth in the third quarter of 2025 and stable inflation at 4.4 per cent provided support.
The tax authority has also intensified digital transformation efforts to boost compliance. Initiatives such as the Electronic Tax Invoice Management System (eTIMS) have enhanced transaction transparency and reduced VAT fraud.
Additionally, KRA has expanded access to services through innovations such as the GavaConnect platform, a WhatsApp-based tax filing system powered by an AI chatbot, and USSD services accessible via *222#.
With one quarter remaining, KRA says it is focused on closing the gap towards its annual revenue target of Ksh2.97 trillion while sustaining compliance and improving service delivery to taxpayers across the country.
 has crossed the Ksh2 trillion revenue collection mark, signalling steady growth in tax performance despite a challenging economic environment.){kind=link}