KRA Surpasses KSh1 Trillion Revenue Mark After Record October Collections

The Kenya Revenue Authority (KRA) has announced that it has crossed the Ksh 1 trillion revenue threshold by the end of October 2026, hitting the milestone a month earlier than in previous financial years.

According to data released by the tax authority, total collections reached Ksh 1.010 trillion for the period. For the month of October alone, KRA collected Ksh 260.630 billion against a target of Ksh 258.304 billion, achieving a 100.9 per cent performance rate and a surplus of Ksh 2.327 billion.

The figure represents a 15.5 per cent revenue growth compared to October 2025 (8.0 per cent) and October 2024 (6.5 per cent). Officials attributed the positive performance to strong showings across both Customs and Domestic Revenue departments.

The Customs department posted its highest-ever monthly collection in KRA history, bringing in Ksh 94.793 billion in October. This surpassed its monthly target by Ksh 1.009 billion, representing a 101.1 per cent performance rate and an 11.3 per cent year-on-year growth, largely propelled by non-oil taxes, which generated a surplus of Ksh 7.243 billion and grew by 26.0 per cent.

How much did KRA collect from corporation tax and domestic VAT?

Meanwhile, domestic revenue collections reached Ksh 165.447 billion, exceeding the Ksh 164.110 billion target by Ksh 1.337 billion. This marked an 18.1 per cent growth compared to the same period last year, driven by above-target collections across key areas. Corporation Tax reached Ksh 23.932 billion against a target of Ksh 20.077 billion, achieving a 119.2 per cent performance rate and a 31.6 per cent growth, with electricity, manufacturing, transportation, and wholesale sectors driving roughly 81 per cent of these collections.

Domestic VAT brought in Ksh 33.367 billion, edging past its Ksh 33.323 billion target by Ksh 45 million and reflecting a 22.1 per cent growth, while gross domestic VAT accelerated to 21.9 per cent over September and October, up from 12.2 per cent in July and August.

Additionally, Domestic Excise Duty exceeded its target for the first time in an extended period, posting a Ksh 945 million surplus and a 54.1 per cent growth fueled by increased remittances from premium beer, wine, spirits, and tobacco manufacturers, though soft drinks and bottled water remittances declined by 4.8 per cent and 96.4 per cent respectively, with the latter drop linked to recent policy shifts.

KRA aims to collect KES 3.268 trillion by the conclusion of the 2026/2027 financial year to support the government’s economic agenda.