KRA Crosses KES 1 Trillion Revenue Mark as October Collections Signal Stronger Tax Performance
Kenya Revenue Authority (KRA) has surpassed the KES 1 trillion revenue milestone, collecting KES 1.010 trillion by the end of October 2026, in a development that signals improved tax mobilization and stronger performance across several key sectors of the economy.
By Editor·
The Authority collected KES 260.630 billion in October against a target of KES 258.304 billion, achieving a performance rate of 100.9%. This represents a surplus of KES 2.327 billion and year-on-year growth of 15.5%, significantly higher than the 8.0% recorded in October 2025.
The performance was supported by both customs and domestic revenue collections.
Customs revenue reached a record monthly high of KES 94.793 billion, representing growth of 11.3% compared with the corresponding period last year. Domestic revenue collections stood at KES 165.447 billion, exceeding the monthly target of KES 164.110 billion and registering growth of 18.1%.
One of the most notable developments was the performance of corporation tax, which recorded growth of 31.6%, collecting KES 23.932 billion against a target of KES 20.077 billion.
Meanwhile, domestic VAT collections reached KES 33.367 billion, marginally exceeding the target of KES 33.323 billion. Domestic excise duty also surpassed its target by KES 945 million, recording growth of 54.1%.
These figures point to stronger tax contributions from corporate activity, manufacturing and consumption-related sectors.
KRA has set an ambitious revenue target of KES 3.268 trillion for the 2026/27 financial year.
Against this target, the reported KES 1.010 trillion represents approximately 30.9% of the annual collection requirement. This provides an important benchmark for assessing progress, although actual revenue performance will depend on the distribution of tax collections throughout the financial year.
The October numbers are encouraging, particularly because revenue growth appears to be strengthening. However, a single strong month does not necessarily establish a sustainable trend.
The bigger test will be whether economic activity, corporate profitability, imports and domestic consumption can continue generating sufficient taxable income without placing excessive pressure on households and businesses.