Kenya’s tax agency surpassed KES1trillion mark in revenue collections in October, eyes KES 3.268 trillion by the end of fiscal year

In addition to surpassing the KES 1 trillion revenue milestone, KRA also exceeded its October 2026 revenue target, collecting KES 260.630 billion against a target of KES 258.304 billion.

This represents a performance rate of 100.9 per cent, translating into a surplus of KES 2.327 billion above the target.

The October performance reflects a revenue growth of 15.5 per cent, compared to growth rates of 8.0 per cent and 6.5 per cent recorded in October 2025 and October 2024, respectively. The good performance is attributed to stellar performance by both Customs and Domestic Revenue.

Customs recorded its highest-ever monthly revenue collection after collecting KES 94.793 billion in Oct 2026, the highest monthly collection in KRA history.

The second-best collection of KES 92.527 billion was realized in Jul 2026. Customs collected a surplus of KES 1.009 billion, registering a performance rate of 101.1% and growth of 11.3% compared to the same period in the last financial year.

The performance was driven by non-oil taxes, which recorded a surplus of KES 7.243 billion and a growth of 26.0%.

Domestic revenue collection was KES 165.447 billion against a target of KES 164.110 billion, surpassing its October 2026 target by KES 1.337 billion and registering a growth of 18.1% compared to the corresponding period last year.

The strong performance was driven by above-target collections across several key tax heads, including Domestic VAT, Domestic Excise, Corporation Tax, Individual Income Tax, Capital Gains Tax (CGT) and Stamp Duty.

Corporation Tax recorded a performance rate of 119.2% after collecting KES 23.932 billion against a target of KES 20.077 billion. This represents a growth of 31.6%. Four key sectors – Electricity, Manufacturing, Transportation and Wholesale- accounted for approximately 81% of Corporation Tax collections in October 2026. These sectors registered an average instalment tax growth of 38.1% during the month, compared to a cumulative growth of 35.9% for the July–October 2026 period.

Domestic VAT surpassed its October 2026 target by KES 45 million, after collecting KES 33.367 billion against a target of KES 33.323 billion, recording a growth of 22.1%. Notably, gross domestic VAT growth accelerated to 21.9% in September–October 2026, up from 12.2% in July–August 2026, reflecting improved revenue performance.

Domestic Excise Duty surpassed its target for the first time in a long period, posting a surplus of KES 945 million and growth of 54.1%. The performance was driven by increased remittances from manufacturers of Keg Beer, Premium Beer, Wine and Spirits, and Tobacco that recorded respective growths of 0.3%, 43.5%, 110.8% and 94.1%. The growth in the latter three product categories was attributed to increased deliveries. However, remittances from manufacturers of Soft Drinks and Bottled Water declined by 4.8% and 96.4%, respectively, with the latter decline attributed to policy changes.

KRA targets to collect KES 3.268 trillion by the end of Financial Year 2026/2027. The Authority is confident that it will continue with the upward trajectory and achieve the set target to enable the government to sustain the country’s economic growth.