KRA hits Ksh. 2.038 trillion in cumulative revenue collection

In the third quarter of FY2025/26, the taxman had targeted Ksh. 2.122 trillion for the July 2025 to March 2026 period. 

Despite not hitting the target, the revenue collected was an increase from Ksh.1.829 trillion collected over the same period in FY 2024/25. 

“This represents a performance rate of 96.1% and an 11.4% growth over the corresponding period in the previous financial year,” KRA said in a statement on Tuesday. 

The revenue body termed the upward trajectory as a sign of resilience of the economy and revenue mobilization.

According to KRA, initiatives targeted at improving administrative efficiency, bolstering digital integration, and streamlining tax compliance were the main drivers of the improved performance. 

Additionally, the authority saw consistent quarter-over-quarter growth in all three quarters, indicating a gradual strengthening of economic activity and increasing taxpayer compliance.

Domestic taxes continued to be the biggest source of revenue, bringing in Ksh. 1.301 trillion over the course of the nine-month period—a 10.4% rise over the previous year. 

With a performance rate of 100.9% and an increase of 13.3%, customs and border control collections surpassed their goal and totalled Ksh.733.7 billion. 

While exchequer revenue was Ksh.1.834 trillion, or 95.5% of the objective, revenue collected on behalf of other government agencies was Ksh.204.452 billion.

According to the taxman, the advances occurred in the face of weak consumer demand, low household spending power, high company expenses, and unpredictable global economic conditions. A 4.9% GDP growth rate in the third quarter of 2025 and 4.4% inflation in March 2026 were two examples of economic measures that provided assistance, nonetheless.

KRA cited implementation of compliance and digital initiatives, including as the Electronic Tax Invoice Management System (eTIMS), the GavaConnect developer platform, and a WhatsApp-based tax filing service intended to increase accessibility and expand the tax base as reasons for the expansion. 

Other strategies that were mentioned as enhancing service delivery and compliance included USSD-based services and increased usage of bank agents.

KRA stated that it is stepping up compliance efforts with one quarter left in the 2025–2026 fiscal year in order to close the gap with its full-year target of Ksh. 2.97 trillion.