The Kenya Revenue Authority (KRA) collected KSh2.038 trillion (US$15.75 billion) in tax revenue by March 31, 2026, underscoring the resilience of the economy and the impact of ongoing tax reforms despite mounting pressure on households and businesses. The figure marks an increase from KSh1.829 trillion (US$14.13 billion) collected in the same period a year earlier.
The revenue authority said the nine-month outturn represented a 96.1 per cent performance rate against a target of KSh2.122 trillion (US$16.40 billion), and an 11.4 per cent year-on-year increase. The result suggests Kenya remains broadly on track even as it navigates moderate domestic demand, elevated business costs and uncertainty in the global trade environment.
Domestic taxes remained the largest source of revenue, contributing KSh1.301 trillion (US$10.05 billion) between July 2025 and March 2026. Customs and border control collections followed at KSh733.7 billion (US$5.67 billion), reflecting stronger import-related performance and improved border efficiency. Revenue collected on behalf of other government agencies came to KSh204.45 billion (US$1.58 billion), while receipts remitted to the National Treasury totalled KSh1.834 trillion (US$14.17 billion).
According to the KRA, the improved performance reflects a combination of administrative reforms, stronger compliance enforcement, and deeper digitalisation of tax services. The authority said its strategy has focused on simplifying procedures, integrating tax systems more directly into business operations, and using data more effectively to broaden the tax base and improve collection efficiency.
Among the key tools supporting this effort is the continued rollout of the Electronic Tax Invoice Management System (eTIMS), which has been used to strengthen invoice visibility and reduce opportunities for VAT fraud. The authority also cited the growth of GavaConnect, its enterprise API platform that allows businesses, fintech firms and ERP providers to embed tax services directly into everyday business systems. According to KRA, more than 2,500 developers have already been onboarded onto the platform.
To widen access and improve compliance, the tax authority has also expanded alternative filing channels, including a WhatsApp-based filing service, an AI-powered assistant called Shuru, and USSD services that enable taxpayers to access KRA services even without smartphones. In customs administration, the authority said it has introduced additional transparency and efficiency tools, including a Centralized Release Office and the deployment of body-worn cameras for customs officers at key verification points, airports and border stations.
Despite the strong performance, the KRA still faces a final-quarter challenge if it is to fully meet its annual target of KSh2.97 trillion (US$22.95 billion) for the 2025/26 fiscal year. However, the authority said it remains confident that the remaining gap can be closed through intensified compliance interventions, continued digital expansion, and sustained revenue momentum in the final stretch of the fiscal period.
The revenue results come at a time when Kenya’s broader economic environment remains mixed. While consumer purchasing power has remained under pressure and businesses continue to contend with higher operating costs, some macroeconomic indicators have offered support. KRA noted that Kenya’s economy expanded by 4.9 per cent in the third quarter of 2025, up from 4.2 per cent a year earlier, while inflation stood at 4.4 per cent in March 2026. The average exchange rate over the period also helped moderate imported inflation pressures.
Overall, the latest revenue figures suggest Kenya’s tax administration reforms are beginning to deliver more consistent gains, even as the economy continues to operate under significant pressure.
