KRA surpasses Sh1 Trillion revenue mark as October collections hit record high

The Kenya Revenue Authority (KRA) has crossed the coveted Sh1 trillion revenue milestone a month earlier than in previous financial years, capping off a stellar performance in October driven by robust growth across customs and domestic tax sectors.

According to a press release issued by the tax authority, total cumulative collections by the end of October 2026 reached Sh1.010 trillion.

This historic achievement underlines an aggressive revenue-mobilization strategy as the agency pursues its ambitious target of collecting Sh3.268 trillion by the close of the 2026/2027 financial year.

For the month of October alone, KRA collected Sh260.630 billion, easily surpassing its monthly target of Sh258.304 billion. This translated to a performance rate of 100.9 % and marked a 15.5% growth compared to the same period in 2025.

"In addition to surpassing the KES 1 trillion revenue milestone, KRA also exceeded its October 2026 revenue target, collecting KES 260.630 billion against a target of KES 258.304 billion," the authority stated.

The surplus of Sh2.327 billion for the month highlights a sustained recovery and compliance trend among Kenyan taxpayers, bolstered by intensified compliance efforts across multiple economic sectors.

KRA’s Customs department shattered previous benchmarks by recording its highest-ever monthly revenue collection, raising Sh94.793 billion in October 2026. This eclipsed the previous record set in July 2026, when collections stood at Sh92.527 billion.

The October figures exceeded the customs target by Sh1.009 billion, representing a 101.1 % performance rate and an 11.3 per cent growth compared to October 2025.

The stellar customs performance was primarily propelled by non-oil taxes, which registered a massive surplus of Sh7.243 billion and a 26 % year-on-year growth.

"The performance was driven by non-oil taxes, which recorded a surplus of KES 7.243 billion and a growth of 26.0%," KRA noted.

On the domestic front, revenue collection stood at Sh165.447 billion against a target of Sh164.110 billion, yielding a surplus of Sh1.337 billion. This represented an 18.1 % growth compared to October 2025.

Growth in domestic revenue was broadly supported by strong returns from Domestic VAT, Domestic Excise, Corporation Tax, Individual Income Tax, Capital Gains Tax, and Stamp Duty.

Corporation Tax emerged as one of the standout performers, bringing in KSh23.932 billion against a target of Sh20.077 billion. This performance rate of 119.2 per cent represented a significant 31.6% growth. Data from the authority reveals that just four key sectors electricity, manufacturing, transportation, and wholesale accounted for approximately 81 per cent of all Corporation Tax collections during the month.

Domestic VAT collections reached Sh33.367 billion against a target of Sh33.323 billion, generating a modest surplus of Sh45 million and a 22.1 % growth rate.

Meanwhile, Domestic Excise Duty achieved a historic milestone by surpassing its monthly target for the first time in a prolonged period. It recorded a surplus of Sh945 million and a stellar growth rate of 54.1 %.

"Domestic Excise Duty surpassed its target for the first time in a long period, posting a surplus of KES 945 million and growth of 54.1%," the statement read.

KRA attributed this surge to increased remittances from manufacturers of keg beer, premium beer, wine, spirits, and tobacco. Notably, excise remittances from wine and spirits skyrocketed by 110.8 % and 94.1 %, respectively.

Conversely, not all sub-sectors shared in the growth. Remittances from soft drink and bottled water manufacturers contracted sharply, declining by 4.8% and 96.4 %, respectively.

With the KSh1 trillion threshold crossed by the end of October, the Kenya Revenue Authority remains optimistic about maintaining its upward trajectory.

The authority believes that sustained enforcement, widening the tax net, and leveraging data-driven compliance models will keep it on track to meet the overarching Sh3.268 trillion target for the current financial year, thereby driving national economic development and government financing.