Kenya Revenue Authority (KRA) has surpassed the Ksh 2 trillion mark in cumulative revenue collection by the close of the third quarter of FY2025/26, collecting Ksh 2.038 trillion as at 31st March 2026 against a target of Ksh 2.122 trillion. This represents a performance rate of 96.1% and an 11.4% growth over the corresponding period in the previous financial year.

The performance reflects deliberate institutional reforms aimed at simplifying compliance, deepening digital integration, and embedding tax administration more seamlessly within everyday economic activity through data-driven administration. The upward trajectory from Ksh 1.829 trillion collected over the same period in FY 2024/25 signals resilience of the economy and resilience in revenue mobilisation.

Quarterly Growth Momentum

Revenue collection maintained steady quarter-on-quarter growth across all three quarters, indicating improving compliance consistency and gradual strengthening in economic activity. The consistent growth trend reflects the positive impact of ongoing compliance and facilitation interventions:

Revenue Drivers

The revenue growth was supported by performance in both Domestic Taxes and Customs:

1. Customs and Border Control: Customs and Border Control remained a key growth driver, surpassing the target with a 100.9% performance rate and delivering Ksh 733.7 billion, reflecting a 13.3% growth compared to Ksh 647.6 billion collected in the same period of FY 2024/25.

2. Domestic Taxes: Domestic taxes remained the largest contributor to revenue performance, yielding Ksh 1.301 trillion between July 2025 and March 2026, representing 10.4% growth over the same period last year.

3. Agency Revenue: Revenue collected on behalf of other Government entities amounted to Ksh 204.452 billion, registering a performance rate of 101.4% against a target of Ksh 201.705 billion. This represents a growth of 10.7% compared to the KSh 184.650 billion realized in the same period of the previous financial year.

4. Exchequer Revenue: Revenue collected on behalf of the National Treasury amounted to Ksh 1.834 trillion, reflecting a performance rate of 95.5% against a target of Ksh 1.921 trillion. This represents a growth of 11.5% compared to the KSh 1.644 trillion collected in the same period in the previous year financial year.

Navigating Economic Indicators

Revenue performance was delivered within a still-constrained macroeconomic environment marked by subdued household purchasing power, soft consumer demand, elevated business costs, and continued global trade uncertainty. This resilience demonstrates continued taxpayer responsiveness, expanding compliance interventions, and improving administrative efficiency despite prevailing economic pressures.

However, certain macroeconomic indicators provided a positive counterbalance:

• GDP grew at a faster pace of 4.9% in Q3 2025, compared to 4.2% in Q3 2024.
• Overall inflation stood at 4.4% in March 2026, up from 4.3% in February 2026, largely driven by increases in prices for Food & Non-Alcoholic Beverages (7.7%), Transport (3.8%), and Housing, Water, Electricity and Gas (2.0%).
• The exchange rate of the Shilling against the US dollar averaged Ksh 129.23/US$ in July – March 2025/26. This appreciation is expected to moderate imported inflation pressures and support domestic demand.

Compliance and Facilitation Initiatives.

Despite revenue mobilization being impeded by impacts from some of the above factors, KRA enhanced its compliance through various initiatives:

• Electronic Tax Invoice Management System(eTIMS): eTIMS continues to strengthen invoice visibility, curb VAT fraud schemes, and improve transaction-level accountability across sectors, with the expense validation initiative further reinforcing tax integrity.
• GavaConnect Developer Portal: GavaConnect, KRA’s Enterprise API platform, is expanding tax administration beyond traditional portals by allowing businesses, fintechs and ERP providers to embed tax services directly into everyday business systems. With over 2,500 developers onboarded, the platform is creating a scalable digital compliance ecosystem.
• WhatsApp Tax Filing and Shuru GPT: To broaden the tax base and simplify compliance, KRA has unveiled a WhatsApp-based tax filing service designed to simplify compliance and expand reach to a broader segment of taxpayers currently outside conventional digital filing channels. Powered by an AI chatbot dubbed “Shuru”, the platform allows taxpayers to access pre-filled details, file returns, generate invoices, and obtain compliance certificates directly through the popular messaging app, eliminating friction associated with traditional web portals.
• Simplified Access to Services: To further improve tax compliance and extend reach to taxpayers without smartphones, the Authority has introduced simplified USSD-based solutions accessible on both feature phones and smartphones by dialling *222#5#, enabling taxpayers to conveniently access KRA services from anywhere.
• Centralized Release Office: The implementation of this office has significantly enhanced the efficiency of cargo clearance processes. This reform has positively impacted Customs revenue performance and contributed to increased import values, resulting in higher average daily non-oil revenue. Non-oil taxes surpassed the target by Ksh 3.555 billion, representing a growth of 16.9%. Overall non-oil import values grew by 10.9%, driven by key commodities such as Vehicles, Cereals, Electrical machinery and equipment, Iron and steel, and Fertiliser.
• Bank Agent Model: KRA is adopting a bank agent model to expand its footprint and enhance service accessibility, particularly in areas with limited or no physical KRA offices.
• Body Worn Cameras: KRA has deployed Body Worn Cameras for Customs Officers at customs verification stations, airports and border points to enhance transparency, compliance and integrity.

Annual Target Outlook

With one quarter remaining in the financial year, KRA remains firmly focused on intensifying compliance interventions, sustaining growth momentum, and closing the remaining gap toward the annual target of Ksh 2.97 trillion, safeguarding gains already achieved while accelerating targeted interventions necessary to deliver the full-year revenue objective. KRA remains committed to making compliance simpler, fairer and more seamless while protecting revenue needed for national development.

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