KRA Collects a Record Sh2.84 Trillion as Targets Remains Out of Reach

The Kenya Revenue Authority collected a record Sh2.844 trillion in the financial year ended June 2026, up 10.6% from Sh2.572 trillion a year earlier. The increase added about Sh273 billion to collections, but was not enough to meet the Sh2.969 trillion target, leaving a shortfall of roughly Sh125 billion.

Of the total collected, Exchequer revenue (mainstream revenue collected for the National Government) rose by 10.5% to Sh2.568 trillion, achieving 95.2% of its target. Agency revenue (levies and charges collected for other government institutions) increased by 11.2% to Sh276.14 billion, with a performance rate of 99.1%.

Looking at the same collections by where they were raised, customs revenue(taxes and levies collected mainly on imported goods) rose by 12.4% to Sh988.76 billion, exceeding its Sh980.79 billion target. Oil related collections contributed Sh370.38 billion, while non oil customs revenue stood at Sh618.38 billion. Domestic revenue increased by 9.6% to Sh1.851 trillion but fell short of its Sh1.991 trillion target.

Within domestic collections, PAYE remained the largest individual tax head, generating Sh598.8 billion after growing by 6.7%. Domestic VAT rose by 8.5% to Sh355.26 billion, while corporation tax increased by 14% to Sh347.07 billion. Smaller tax heads recorded faster growth, with betting taxes rising by 24.9% to Sh16.53 billion and revenue from the Significant Economic Presence Tax and Digital Service Tax nearly doubling to Sh1.61 billion. Domestic excise was the weak spot, declining by 10.9% to Sh61.84 billion.

Viewed by sector, five areas accounted for 62% of total collections. Manufacturing led with Sh462 billion, up 9.2%, followed by energy at Sh445 billion after growing by 9.1%. Finance and insurance generated Sh320 billion, wholesale and retail trade Sh288 billion, and ICT Sh248 billion.

KRA attributed the stronger collections partly to technology, saying it was “leveraging technology to improve efficiency, transparency and effectiveness in revenue collection.” By June 2026, 750,915 taxpayers had been onboarded onto eTIMS, while the authority had expanded the integration of its tax and customs systems and the use of artificial intelligence and cargo scanners to improve compliance and seal revenue leakages.