Kenya Revenue Authority Hits Revenue Target Early
In the initial four months of the 2026/27 fiscal year, the Kenya Revenue Authority (KRA) has amassed KES 1.010 trillion, surpassing the trillion-shilling threshold a month ahead of its typical schedule.
Disclosed figures from the Authority highlight a robust October, during which KRA garnered KES 260.630 billion, marginally exceeding the anticipated KES 258.304 billion for that period.
Although the surplus was minimal, under 1%, the growth rate reveals a more significant trend. October’s revenue climbed 15.5% compared to the previous year, nearly doubling the 8.0% increase from October 2025 and significantly outpacing the 6.5% rise in October 2024.
KRA credits this achievement to both customs and domestic taxes surpassing their respective goals, rather than relying on a single revenue stream.
Customs Breaks Records
Customs, responsible for taxing imported goods, achieved its most successful month ever, breaking the previous record set in July. Non-oil import taxes surged by 26%, driving much of this growth, though the performance of oil-related imports remains unspecified.
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Each category in the table exceeded its monthly target, with corporate tax showing the most substantial surplus.
| Category | October Revenue | Target Comparison | Yearly Growth |
| Total Taxes | KES 260.6 billion | 0.9% above | 15.5% |
| Customs (Import Taxes) | KES 94.8 billion | 1.1% above | 11.3% |
| Domestic Revenue | KES 165.4 billion | Approximately 0.8% above | 18.1% |
| Corporate Tax | KES 23.9 billion | 19.2% above | 31.6% |
| Domestic VAT | KES 33.4 billion | Slightly above | 22.1% |
| Excise Duty | Not specified | KES 945 million above | 54.1% |
Given that non-oil taxes exceeded targets by KES 7.243 billion, while overall customs revenue surpassed goals by only KES 1.009 billion, it appears oil-related taxes fell short of expectations.
Corporate Tax Surges
Domestically, corporate tax emerged as a key performer, nearly 20% above its target. Sectors like electricity, manufacturing, transportation, and wholesale contributed approximately 81% of this, indicating a concentrated rather than broad-based improvement.
VAT revenue barely met its goal, although KRA noted a growth acceleration to 21.9% in September and October, up from 12.2% in July and August.
Excise duty, levied on products like alcohol and tobacco, exceeded its target for the first time in a considerable period. Revenue from wine and spirits producers more than doubled, and tobacco payments nearly doubled, both attributed to increased deliveries. Premium beer revenue rose by 43.5%, while keg beer remained stable.
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Mixed Excise Duty Results
Soft drink revenue declined by 4.8%, and bottled water payments plummeted by 96.4%, a drop KRA links to unspecified policy adjustments.
KRA aims to collect KES 3.268 trillion by June 2027. With 30.9% of this target already achieved, approximately KES 2.258 trillion remains to be collected over the next eight months.
This equates to roughly KES 282 billion monthly, about 8% more than October’s collection and nearly 12% above the year-to-date average.
| If KRA collects this much each month from November | The year ends at | Against the KES 3.268 trillion target |
| KES 252.5 billion (average so far) | KES 3.03 trillion | KES 238 billion short |
| KES 260.6 billion (October’s level) | KES 3.095 trillion | KES 173 billion short |
| KES 282.3 billion (pace needed) | KES 3.268 trillion | Target met |
Maintaining October’s record would still result in a KES 173 billion shortfall, necessitating sustained high performance. The Authority is upbeat, saying it is “confident that it will continue with the upward trajectory” and reach its target. Whether that holds will depend on how import taxes, company payments, and VAT perform in the months ahead, particularly if the strong corporate gains prove to be more than a one-month spike.
