The Kenya Revenue Authority’s (KRA) Customs and Border Control Department collected a record Sh988.78 billion in the 2025/26 financial year, surpassing its revenue target as stronger trade volumes, improved tax compliance, and digital reforms boosted collections.
The department exceeded its target of Sh980.79 billion by posting a performance rate of 100.8 per cent, representing a 12.4 per cent increase from the Sh879.33 billion collected in the previous financial year.
This year’s performance also marked the fifth consecutive year of revenue growth, with Customs collecting more than Sh4.1 trillion cumulatively over the period.
The strong performance was attributed to enhanced compliance initiatives, increased cargo volumes, technology-driven processes, improved risk management, and closer collaboration with stakeholders across the trading community.
In a statement released to the media on Wednesday, Commissioner for Customs and Border Control, Dr. Lilian Nyawanda, said the record collections reflected the success of KRA’s customs modernization programme, which seeks to balance revenue mobilization with trade facilitation.
She said the authority had deliberately leveraged technology, strengthened compliance measures, and deepened partnerships with traders to safeguard government revenue while reinforcing Kenya’s position as a regional trade and logistics hub.
During the financial year, she said, Customs also registered the highest monthly revenue collection in its history after raising Sh89.08 billion in June 2026, translating to a performance rate of 108 per cent.
The collections were driven mainly by the road maintenance levy, value-added tax on ordinary imports, import duty, import declaration fees, railway development levy, and excise duty on imports.
Nyawanda said the department exceeded its monthly revenue targets in eight of the 12 months under review, underscoring consistent growth in customs collections throughout the year.
She added that non-oil taxes recorded the strongest growth, increasing by 14.3 per cent to Sh618.4 billion, while oil taxes rose by 9.5 per cent to Sh370.38 billion.
The Commissioner also cited the continued success of the Authorized Economic Operator (AEO) programme, noting that certified businesses accounted for 28 per cent of total customs tax collections, demonstrating the importance of trusted trader partnerships in strengthening voluntary compliance and improving supply chain efficiency.
As part of efforts to facilitate regional trade, the authority signed a memorandum of understanding (MoU) with India’s Central Board of Indirect Taxes and Customs to enable the exchange of pre-arrival cargo information.
The arrangement is expected to speed up cargo clearance, improve risk management, and enhance the security of cross-border supply chains through real-time electronic exchange of customs data.
KRA, she said, has also rolled out an eCustoms mobile application to make customs and tax services more accessible and affordable for cross-border traders.
In addition, the introduction of body-worn cameras is expected to enhance professionalism, transparency, accountability, and service delivery in customs operations.
Further reforms, she said, include the ongoing upgrade of the Integrated Customs Management System and the planned adoption of the Trade Logistics Information Pipeline, a blockchain-enabled digital trade corridor designed to support paperless trade, improve cargo visibility, reduce processing times, and enhance the efficiency and security of cross-border trade.
The tax collector, she said, will continue modernising customs administration through digital transformation, intelligence-led enforcement, and stronger stakeholder engagement to facilitate legitimate trade, combat illicit trade, and strengthen border security.
By Chris Mahandara
