NAIROBI – The Kenya Revenue Authority (KRA) has recorded a strong early performance in the 2026/27 financial year, collecting KES 1.010 trillion in the first four months (July to October 2026). This reaches the Sh1 trillion mark a full month earlier than in previous years, reflecting improved revenue mobilization. Kra
In October alone, KRA collected KES 260.630 billion against a target of KES 258.304 billion, a performance rate of 100.9% and a surplus of KES 2.327 billion. This represented 15.5% year-on-year growth, up from 8.0% in October 2025 and 6.5% in October 2024. The Authority attributes the results to strong showings in both Customs and domestic revenue. Kra
Where the Money Came From
Customs and Border Control posted its highest-ever monthly collection of KES 94.793 billion (beating the previous record of KES 92.527 billion set in July 2026). It exceeded its target by KES 1.009 billion (101.1% performance) with 11.3% growth. Non-oil taxes drove the gains, recording a surplus of KES 7.243 billion and 26% growth. Kra
Domestic revenue reached KES 165.447 billion against a target of KES 164.110 billion (surplus of KES 1.337 billion, 18.1% growth). Key tax heads all performed above target:
- Corporation Tax: KES 23.932 billion (119.2% of target, 31.6% growth). Electricity, manufacturing, transportation, and wholesale sectors accounted for about 81% of collections. These sectors saw average instalment tax growth of 38.1% in the month (35.9% cumulative for July–October). Kra
- Domestic VAT: KES 33.367 billion (slight surplus of KES 45 million, 22.1% growth). Growth accelerated in September–October.
- Domestic Excise Duty: Surpassed its target for the first time in a long period (surplus of KES 945 million, 54.1% growth). Driven by higher remittances from keg beer (+0.3%), premium beer (+43.5%), wine (+110.8%), spirits (+94.1%), and tobacco (+94.1%). Soft drinks and bottled water declined.
- Other contributors included Individual Income Tax, Capital Gains Tax, and Stamp Duty. Kra
KRA is targeting KES 3.268 trillion for the full 2026/27 financial year and has expressed confidence in maintaining the upward trajectory. Kra
Closing Loopholes and Boosting Compliance
The gains come amid ongoing efforts to seal revenue leaks and broaden the tax base. KRA recently uncovered a major “missing trader” VAT fraud scheme involving 72 related entities that issued fictitious eTIMS invoices worth about KES 33.8 billion between 2020 and 2025, facilitating nearly KES 4 billion in fraudulent input VAT claims. Prosecutions have been approved against dozens of individuals and companies; unsupported claims are being disallowed and devices disabled. Kenyanews
Broader measures include expanded use of the Electronic Tax Invoice Management System (eTIMS), AI-driven validation of tax returns against invoices, withholding data, and customs records, tighter scrutiny of mobile money activity (including Till numbers and Pochi la Biashara), enhanced landlord compliance through mapping and data tools, and stronger digital economy taxes. Recent legislation also provides performance incentives for KRA staff linked to surplus collections.
These steps aim to improve voluntary compliance, reduce fraud, and support Kenya’s goal of raising the tax-to-GDP ratio.