Tax Revenue in Kenya Grows 11.4% as KRA Nears Ksh 2.1 Trillion Mark
Kenya’s tax agency has had a strong run of revenue growth this financial year, even though it managed to just scrape past its target.
By the time March 31st rolled around in 2026, the Kenya Revenue Authority (KRA) had brought in a staggering Ksh 2.038 trillion in cumulative revenue. That’s the total collected over the first nine months of the 2025/26 financial year – a period when most people had been expecting a slightly better performance.
What KRA had set out to do was collect Ksh 2.122 trillion between July 2025 and March 2026. And while they’d come up short – missing that goal by a hair’s breadth – the overall picture is still one of steady growth.
Growth Still Beats Last Year’s Performance
When you look at the numbers from the same time last year, it’s clear that KRA is ahead of the game. They’d managed to collect Ksh 1.829 trillion over a similar period in the 2024/25 financial year.
“We’re looking at a performance rate of 96.1% and an uplift of 11.4% over the corresponding period in the previous year,” KRA noted in a statement given on Tuesday.
That growth is a sign that their system is holding up pretty well – and actually showing some resilience even under all the pressure they’ve been under.
Why Revenue Is Still Rising
KRA think the reason for the upswing is a combination of all the reforms and system improvements they’ve put in place. In the background, they’ve been working hard to make their tax processes smoother and more user friendly.
The effort to improve back office efficiency, roll out more digital platforms and simplify compliance procedures seems to be paying off. And KRA reported steady growth across all three quarters – which is a pretty clear sign that the economy is starting to perk up.
Domestic Taxes Lead the Way
A lot of the revenue came from domestic taxes – and boy did they deliver – pulling in a massive Ksh 1.301 trillion over the 9 months. That’s a 10.4% jump on last year.
Customs and border control collections were a real surprise, raking in a healthy Ksh 733.7 billion and exceeding targets by a very healthy margin. They beat their target with a 100.9% performance rate and saw a 13.3% increase in revenue.
Exchequer revenue meanwhile came in at Ksh 1.834 trillion – a bit shy of target at 95.5%. And on the otherside of the ledger Revenue collected on behalf of other government agencies hit Ksh 204.452 billion.
Economic Pressures Still in Play
It wasn’t easy, KRA admits. The gains were still made in tough economic conditions.
Consumer demand was weak, household spending power was down, business costs were up and outside of kenya, things were uncertain too. And yet still there were some silver linings.
We saw a 4.9% gdp growth rate in Q3 2025, and inflation was at 4.4% in March 2026 – factors that actually helped tax collection a bit.
Digital Push Driving Compliance
KRA are very keen on the tech side of tax collection – and for good reason.
They’re pointing to the likes of their electronic tax invoice management system, gavaconnect developer platform and even their whatsapp based tax filing service as key drivers of growth.
add to that ussd services and an increased use of bank agents – and its clear that tax filing is becoming a lot more accessible – and compliance is slowly but surely getting better.
Final Quarter Pressure Mounts
With just a quarter to go in the financial year, the pressure is really on now.
KRA is stepping up its compliance efforts and working towards its target of Ksh 2.97 trillion by the end of the year. But can they make it there in time? – only time will tell – but as things stand, its looking like it’s going to be a close call.
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Tax Revenue in Kenya Grows 11.4% as KRA Nears Ksh 2.1 Trillion Mark
