The Kenya Revenue Authority (KRA) has surpassed the Sh2 trillion mark in cumulative revenue collection by the close of the third quarter of Financial Year (FY) 2025/26, collecting Sh2.038 trillion as at March 31, 2026 against a target of Sh2.122 trillion.
This represents a performance rate of 96.1 per cent and an 11.4 per cent growth over the corresponding period in the previous financial year.
KRA Commissioner General Humphrey Wattanga said that the performance reflects deliberate institutional reforms aimed at simplifying compliance, deepening digital integration, and embedding tax administration more seamlessly within everyday economic activity through data-driven administration.
Wattanga said that the upward trajectory from Sh1.829 trillion collected over the same period in FY 2024/25 signals resilience of the economy and resilience in revenue mobilization.
“Revenue collection maintained steady quarter-on-quarter growth across all three quarters, indicating improving compliance consistency and gradual strengthening in economic activity. The consistent growth trend reflects the positive impact of ongoing compliance and facilitation interventions,” said Wattanga.
The Commissioner General highlighted that the revenue growth was supported by performance in both Domestic Taxes and Customs where Customs and Border Control remained a key growth driver, surpassing target with a 100.9 per cent performance rate and delivering Sh733.7 billion, reflecting a 13.3 per cent growth compared to Sh647.6 billion collected in the same period of FY 2024/25.
According to Wattanga, Domestic Taxes remained the largest contributor to revenue performance, yielding Sh1.301 trillion between July 2025 and March2026, representing 10.4 per cent growth over the same period last year.
“Agency Revenue collected on behalf of other Government entities amounted to Sh204.452 billion, registering a performance rate of 101.4 per cent against a target of Sh201.705 billion. This represents a growth of 10.7 per cent compared to the Sh184.650 billion realized in the same period of the previous financial year,” explained Wattanga.
He added that the Exchequer Revenue collected on behalf of The National Treasury amounted to Sh1.834 trillion, reflecting a performance rate of 95.5 per cent against a target of Sh1.921 trillion.
This represents a growth of 11.5 per cent compared to the Sh1.644 trillion collected in the same period in the previous financial year.
Wattanga explained that the Revenue performance was delivered within a still-constrained macro-economic environment marked by subdued household purchasing power, soft consumer demand, elevated business costs, and continued global trade uncertainty.
This resilience demonstrates continued taxpayer responsiveness, expanding compliance interventions, and improving administrative efficiency despite prevailing economic pressures.
“However, certain macroeconomic indicators provided a positive counterbalance where the Gross Domestic Product (GDP) grew at a faster pace of 4.9 per cent in Q3 2025, compared to 4.2 per cent in Q3 2024,” said Wattanga.
He highlighted that overall inflation stood at 4.4 percent in March 2026, up from 4.3 percent in February 2026, largely driven by increases in prices for Food and Non-Alcoholic Beverages (7.7 per cent), Transport (3.8 per cent), and Housing, Water, Electricity and Gas (2.0 per cent).
The exchange rate of the shilling against the US dollar averaged Sh129.23/US$ in July – March 2025/26. This appreciation is expected to moderate imported inflation pressures and support domestic demand.
Despite revenue mobilization being impeded by impacts from some of the above factors, KRA enhanced its compliance through various initiatives such as Electronic Tax Invoice Management System (eTIMS).
“The eTIMS continues to strengthen invoice visibility, curb VAT fraud schemes, and improve transaction-level accountability across sectors, with the expense validation initiative further reinforcing tax integrity,” said Wattanga.
He said that the Gava Connect Developer Portal “GavaConnect”, KRA’s Enterprise API platform, is expanding tax administration beyond traditional portals by allowing businesses, fintechs and ERP providers to embed tax services directly into everyday business systems. With over 2,500 developers onboarded, the platform is creating a scalable digital compliance ecosystem.
Wattanga added that they recently introduced the WhatsApp-based tax filing service designed to simplify compliance and expand reach to a broader segment of taxpayers currently outside conventional digital filing channels.
“Powered by an AI chatbot dubbed “Shuru”, the platform allows taxpayers to access pre-filled details, file returns, generate invoices, and obtain compliance certificates directly through the popular messaging app, eliminating friction associated with traditional web portals,” said Wattanga.
“To further improve tax compliance and extend reach to taxpayers without smartphones, the Authority has introduced simplified USSD-based solutions accessible on both feature phones and smartphones by dialing *222#5#, enabling taxpayers to conveniently access KRA services from anywhere,” he explained.
According to the Commissioner General, the implementation of the Centralized Release Office has significantly enhanced the efficiency of cargo clearance processes. This reform has positively impacted Customs revenue performance and contributed to increased import values, resulting in higher average daily non-oil revenue.
Non-oil taxes surpassed the target by Sh3.555 billion, representing a growth of 16.9 percent. Overall non-oil import values grew by 10.9 per cent, driven by key commodities such as Vehicles, Cereals, Electrical machinery and equipment, Iron and steel, and Fertiliser.
Wattanga added that KRA is adopting a bank agent model to expand its footprint and enhance service accessibility, particularly in areas with limited or no physical KRA offices.
KRA has also deployed Body Worn Cameras for Customs officers at customs verification stations, airports and border points to enhance transparency, compliance and integrity.
Wattanga said that with one quarter remaining in the financial year, KRA remains firmly focused on intensifying compliance interventions, sustaining growth momentum, and closing the remaining gap toward the annual target of Sh2.97 trillion, safeguarding gains already achieved while accelerating targeted interventions necessary to deliver the full-year revenue objective.
“KRA remains committed to making compliance simpler, fairer and more seamless while protecting revenue needed for national development,” said Wattanga.
By Joseph Ng’ang’a
