Revenue hits Sh2 trillion mark as KRA maintains growth momentum

JOSEPH NG’ANG’A-KNA

The Kenya Revenue Authority (KRA) surpassed the Sh2 trillion mark in cumulative revenue collection by the close of the third quarter of the Financial Year (FY) 2025/26, collecting Sh2.038 trillion as of March 31, 2026, against a target of Sh2.122 trillion.

This represents a performance rate of 96.1 per cent and an 11.4 per cent growth compared to the corresponding period in the previous financial year.

Outgoing KRA Commissioner General Humphrey Wattanga said that the performance reflects deliberate institutional reforms aimed at simplifying compliance, deepening digital integration, and embedding tax administration more seamlessly within everyday economic activity through data-driven administration.

Wattanga said that the upward trajectory from Sh1.829 trillion collected over the same period in FY 2024/25 signals resilience of the economy and resilience in revenue mobilization.

“Revenue collection maintained steady quarter-on-quarter growth across all three quarters, indicating improving compliance consistency and gradual strengthening in economic activity. The consistent growth trend reflects the positive impact of ongoing compliance and facilitation interventions,” said Wattanga.

The outgoing commissioner general highlighted that the revenue growth was supported by performance in both domestic taxes and customs where customs and border control remained a key growth driver, surpassing target with a 100.9 per cent performance rate and delivering Sh733.7 billion, reflecting a 13.3 per cent growth compared to Sh647.6 billion collected in the same period of FY 2024/25.

According to Wattanga, domestic taxes remained the largest contributor to revenue performance, yielding Sh1.301 trillion between July 2025 and March2026, representing 10.4 per cent growth over the same period last year.

“Agency revenue collected on behalf of other government entities amounted to Sh204.452 billion, registering a performance rate of 101.4 per cent against a target of Sh201.705 billion.

"This represents a growth of 10.7 per cent compared to the Sh184.650 billion realized in the same period of the previous financial year,” Wattanga explained.

He added that the exchequer revenue collected on behalf of the National Treasury amounted to Sh1.834 trillion, reflecting a performance rate of 95.5 per cent against a target of Sh1.921 trillion.

This represents a growth of 11.5 per cent compared to the Sh1.644 trillion collected in the same period in the previous financial year.

Wattanga explained that the revenue performance was delivered within a still-constrained macro-economic environment marked by subdued household purchasing power, soft consumer demand, elevated business costs, and continued global trade uncertainty.

This resilience demonstrates continued taxpayer responsiveness, expanding compliance interventions, and improving administrative efficiency despite prevailing economic pressures.