A final-quarter revenue drive is shaping up as Kenya’s tax agency races against time to bridge a sizeable funding gap and secure its full-year collection ambitions.
Kenya Revenue Authority is targeting Sh932 billion over the next three months, leaning on a combination of stricter enforcement and expanded use of digital platforms to lift collections to its Sh2.97 trillion annual objective.
The push comes after the authority recorded Sh2.038 trillion in the first nine months of the financial year, marking the first time it has surpassed the Sh2 trillion mark within that period. Even with the milestone, the figure still trailed the Sh2.122 trillion benchmark, leaving a deficit that now places added urgency on the final quarter.
The agency typically experiences its strongest inflows in the last quarter, driven largely by corporate income tax instalments paid by major firms ahead of filing deadlines. This seasonal pattern is expected to play a central role once again, as the authority seeks to convert scheduled payments into momentum strong enough to close the gap.
Commissioner-General Humphrey Wattanga has pointed to a sustained push on compliance measures aimed at consolidating earlier gains while accelerating collections. The approach combines monitoring, targeted interventions, and operational adjustments designed to maximise revenue inflows within the remaining window.
Technology has become a cornerstone of the strategy, with the authority rolling out multiple digital channels to simplify tax filing and widen participation. A WhatsApp-based service powered by an artificial intelligence assistant known as “Shuru” now allows taxpayers to access filing support through messaging, while USSD services cater to users without smartphones, extending reach into lower-income and informal segments of the economy.
At the same time, the Electronic Tax Invoice Management System is being used to track transactions in real time, particularly in sectors prone to underreporting. By capturing invoice data at the point of issuance, the system is intended to strengthen oversight and reduce opportunities for revenue leakage, especially within value-added tax collections.
Integration with private sector systems has also been expanded through the GavaConnect platform, which enables businesses, fintech companies, and developers to embed tax services into their own applications. The move is expected to streamline compliance processes while giving the authority greater visibility into economic activity across different sectors.
Enforcement actions are running in parallel with the digital reforms. Customs officers operating at border points and airports are now equipped with body-worn cameras to improve transparency and accountability, part of broader efforts to tighten controls where revenue losses have historically occurred.
Customs performance has continued to provide a steady boost to overall collections, rising by 13.3 percent to Sh733.7 billion in the nine-month period and slightly exceeding targets. Increased imports of vehicles, machinery, cereals, and industrial inputs have contributed to the uptick, reflecting both demand and improved compliance at entry points.
Non-oil revenue streams have also shown notable expansion, growing by 16.9 percent and outperforming expectations, while domestic taxes—the largest contributor to total revenue—recorded a slower increase of 10.4 percent to Sh1.301 trillion.
The comparatively modest growth in domestic taxes highlights underlying pressures in economic activity, even as gains in imports and compliance measures help sustain overall revenue performance.
