Nairobi: 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.
According to Kenya News Agency, 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 highlighted the upward trajectory from Sh1.829 trillion collected over the same period in FY 2024/25, signaling resilience in the economy and 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 noted that the growth was supported by performance in both Domestic Taxes and Customs, with Customs and Border Control surpassing targets with a 100.9 per cent performance rate, delivering Sh733.7 billion, a 13.3 per cent growth compared to Sh647.6 billion in the same period of FY 2024/25.
Wattanga stated that Domestic Taxes remained the largest contributor to revenue performance, yielding Sh1.301 trillion between July 2025 and March 2026, 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, representing an 11.5 per cent growth compared to Sh1.644 trillion collected in the previous financial year. Wattanga explained that the revenue performance was achieved within a constrained macro-economic environment marked by subdued household purchasing power, soft consumer demand, elevated business costs, and continued global trade uncertainty.
Despite these challenges, the KRA enhanced its compliance through initiatives like the Electronic Tax Invoice Management System (eTIMS), which strengthens invoice visibility and curbs VAT fraud schemes. Wattanga emphasized the role of the Gava Connect Developer Portal 'GavaConnect', KRA's Enterprise API platform that allows tax services to be integrated into everyday business systems, enhancing digital compliance.
Wattanga further explained the implementation of the Centralized Release Office has significantly enhanced the efficiency of cargo clearance processes, positively impacting Customs revenue performance. Non-oil taxes surpassed the target by Sh3.555 billion, representing a growth of 16.9 percent, driven by key commodities such as Vehicles, Cereals, Electrical machinery, Iron and steel, and Fertiliser.
With one quarter remaining in the financial year, KRA is focused on intensifying compliance interventions, sustaining growth momentum, and closing the remaining gap toward the annual target of Sh2.97 trillion, ensuring gains are safeguarded while accelerating necessary interventions to meet the full-year revenue objective. 'KRA remains committed to making compliance simpler, fairer and more seamless while protecting revenue needed for national development,' concluded Wattanga.