KRA surpasses Sh1 trillion revenue mark, records 15.5% growth

The Kenya Revenue Authority (KRA) has surpassed the Sh1 trillion mark in revenue collection, raising Sh1.010 trillion by the end of October 2026, a month earlier than in previous financial years.

The milestone comes amid improved revenue mobilisation, with the tax authority also exceeding its October collection target after raising Sh260.630 billion against a target of Sh258.304 billion.

In a press release dated November 5, 2026, KRA said the October collections represented a performance rate of 100.9 per cent, translating into a surplus of Sh2.327 billion above the target.

The authority recorded revenue growth of 15.5 % during the month, compared with growth rates of 8.0% and 6.5 % recorded in October 2025 and October 2024, respectively.

KRA attributed the improved performance to strong collections from both Customs and Domestic Revenue, which exceeded their respective monthly targets.

Customs recorded its highest-ever monthly revenue collection after raising Sh94.793 billion in October 2026, surpassing its previous record of Sh92.527 billion achieved in July 2026.

The department exceeded its October target by Sh1.009 billion, representing a performance rate of 101.1 per cent and revenue growth of 11.3 % compared with the corresponding period in the previous financial year.

According to KRA, non-oil taxes largely drove the performance, recording a surplus of Sh7.243 billion and growth of 26%.

Domestic revenue also grew strongly, collecting Sh165.447 billion against a target of Sh164.110 billion.

The collections translated into a surplus of Sh1.337 billion and growth of 18.1% compared with October last year.

KRA said the performance was supported by above-target collections across several tax categories, including Domestic Value Added Tax (VAT), Domestic Excise Duty, Corporation Tax, Individual Income Tax, Capital Gains Tax and Stamp Duty.

Corporation Tax recorded one of the strongest performances, collecting Sh23.932 billion against a target of Sh20.077 billion.

This represented a performance rate of 119.2%, with collections growing by 31.6%.

Four sectors, namely electricity, manufacturing, transportation and wholesale, accounted for approximately 81 % of Corporation Tax collections during the month.

The sectors registered average instalment tax growth of 38.1% in October, compared with cumulative growth of 35.9% between July and October 2026.

Domestic VAT collections also exceeded expectations, with KRA raising Sh33.367 billion against a target of Sh33.323 billion.

The collections represented a surplus of Sh45 million and growth of 22.1%.

The authority noted that gross domestic VAT growth accelerated to 21.9% during September and October, up from 12.2% recorded between July and August 2026.

Domestic Excise Duty also exceeded its target for the first time in a prolonged period, recording a surplus of Sh945 million and growth of 54.1%.

The improved performance was attributed to increased remittances from manufacturers of keg beer, premium beer, wine, spirits and tobacco.

Wine recorded growth of 110.8%, while tobacco remittances increased by 94.1%. Premium beer collections grew by 43.5%, while keg beer registered a marginal increase of 0.3%.

However, remittances from manufacturers of soft drinks and bottled water declined by 4.8 % and 96.4%, respectively. KRA attributed the decline in bottled water collections to policy changes.

The authority is targeting to collect Sh3.268 trillion by the end of the 2026/2027 financial year.

KRA expressed confidence that the improved revenue collection trend would continue, enabling it to achieve the annual target and support the government's efforts to sustain economic growth.