KRA revenue collection surpasses Ksh.1 trillion mark in October

KRA said it collected Ksh.260.630 billion in October, exceeding its monthly target of Ksh.258.304 billion by Ksh.2.327 billion.

Kenya Revenue Authority headquarters at Times Tower.

The Kenya Revenue Authority (KRA) has surpassed the Ksh.1 trillion mark in revenue collection, raising Ksh.1.010 trillion by the end of October 2026.

In a statement issued on Thursday, November 5, KRA said it collected Ksh.260.630 billion in October, exceeding its monthly target of Ksh.258.304 billion by Ksh.2.327 billion.

The October collection represented a performance rate of 100.9 per cent and a 15.5 per cent growth compared to the same month last year, when revenue grew by 8 per cent.

KRA attributed the performance to increased collections from both Customs and Domestic Revenue departments.

Customs recorded its highest-ever monthly collection after raising Ksh.94.793 billion in October, surpassing its previous record of Ksh.92.527 billion set in July 2026.

The department exceeded its October target by Ksh.1.009 billion, registering a performance rate of 101.1 per cent and growth of 11.3 per cent compared to the corresponding period last financial year.

The performance was largely driven by non-oil taxes, which recorded a surplus of Ksh.7.243 billion and growth of 26 per cent.

Domestic revenue also exceeded its monthly target, collecting Ksh.165.447 billion against a target of Ksh.164.110 billion, representing a surplus of Ksh.1.337 billion and growth of 18.1 per cent.

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

Corporation Tax recorded a performance rate of 119.2 per cent after collections reached Ksh.23.932 billion against a target of Ksh.20.077 billion, representing growth of 31.6 per cent.

The electricity, manufacturing, transportation and wholesale sectors accounted for approximately 81 per cent of Corporation Tax collections during the month.

Domestic VAT collections stood at Ksh.33.367 billion, slightly above the target of Ksh.33.323 billion, while recording growth of 22.1 per cent.

Further, Domestic Excise Duty exceeded its target for the first time in a prolonged period, posting a surplus of Ksh.945 million and growth of 54.1 per cent.

"The performance was driven by increased remittances from manufacturers of Keg Beer, Premium Beer, Wine and Spirits, and Tobacco that recorded respective growths of 0.3 per cent, 43.5 per cent, 110.8 per cent and 94.1 per cent," the statement read in part.

The revenue authority is targeting to collect Ksh.3.268 trillion by the end of the 2026/2027 financial year, as it seeks to sustain the upward revenue collection trend.