KRA Revenue Collection Surpasses KSh1 Trillion Mark in October 2026

The Kenya Revenue Authority (KRA) has surpassed the KSh1 trillion revenue collection milestone, raising KSh1.010 trillion by the end of October 2026, a month earlier than in previous financial years.

The milestone follows a strong October performance, during which the tax authority collected KSh260.630 billion against a monthly target of KSh258.304 billion.

In a statement released on Thursday, November 5, 2026, KRA said the October collections exceeded the target by KSh2.327 billion, representing a performance rate of 100.9 per cent.

The latest figures also represent a 15.5 per cent increase compared to October 2025, when revenue collection growth stood at 8 per cent.

KRA attributed the improved performance to stronger collections from both its Customs and Domestic Revenue departments.

Customs Revenue Records Historic Performance

The Customs and Border Control department recorded its highest-ever monthly revenue collection after raising KSh94.793 billion in October 2026.

The figure surpassed the previous record of KSh92.527 billion achieved in July 2026.

Customs collections exceeded the October target by KSh1.009 billion, representing a performance rate of 101.1 per cent and annual growth of 11.3 per cent.

According to KRA, the strong performance was largely driven by non-oil taxes, which recorded a surplus of KSh7.243 billion and growth of 26 per cent.

Domestic Revenue Collection Exceeds Target

Domestic revenue collections also performed above expectations, reaching KSh165.447 billion against a target of KSh164.110 billion.

This represented a surplus of KSh1.337 billion and growth of 18.1 per cent compared to the corresponding period last year.

KRA attributed the performance to improved collections across several key tax categories, including Value Added Tax (VAT), Excise Duty, Corporation Tax, Individual Income Tax, Capital Gains Tax and Stamp Duty.

Corporation Tax recorded particularly strong growth, with collections reaching KSh23.932 billion against a target of KSh20.077 billion.

The performance represented a 119.2 per cent achievement rate and growth of 31.6 per cent.

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

Excise Duty Collections Grow by 54.1 Per Cent

Domestic Excise Duty also recorded a significant improvement, surpassing its monthly target for the first time in an extended period.

The tax category registered a surplus of KSh945 million and growth of 54.1 per cent.

KRA attributed the increase to higher remittances from manufacturers of alcoholic beverages and tobacco products.

Collections from manufacturers of keg beer, premium beer, wine and spirits, and tobacco recorded growth rates of 0.3 per cent, 43.5 per cent, 110.8 per cent and 94.1 per cent, respectively.

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

Meanwhile, domestic VAT collections reached KSh33.367 billion against a target of KSh33.323 billion, representing growth of 22.1 per cent.

KRA Targets KSh3.268 Trillion for 2026/2027

Despite surpassing the KSh1 trillion milestone, KRA faces a substantial task in meeting its overall revenue target of KSh3.268 trillion for the 2026/2027 financial year.

The authority will need to sustain its improved collection performance over the remaining months of the financial year to achieve the target.

The latest milestone comes amid government efforts to strengthen domestic revenue mobilisation, reduce reliance on borrowing and increase resources available for national development programmes.

KRA expressed confidence in maintaining the positive revenue collection trajectory, noting that improved compliance and stronger performance across key tax categories would support the government's financing requirements.

The October performance marks an important step in the authority's revenue mobilisation efforts, although its ability to sustain the momentum will determine whether it achieves the ambitious annual target by June 2027.