KRA collects record Ksh2.84 trillion as customs beats revenue target
By Ndiritu Wanjiru, July 11, 2026The Kenya Revenue Authority (KRA) collected a record Ksh2.84 trillion in the 2025/26 financial year, which is an overall increase of 10.1 per cent from the previous year. But the overall performance was largely attributable to an increase in customs revenue, which exceeded the annual target.
In a report released on Friday, July 10, 2026, by the Kenya Revenue Authority for the financial year 2025/2026, the Customs Department has raised its target of collecting Ksh980.79 billion in a year and is on track to collect Ksh988.78 billion, representing 100.8 per cent of the target. Customs was the top revenue earner, with a 12.4 per cent rise in collections compared to the previous financial year.
KRA said the good customs performance was driven by the strong oil revenue collections of Ksh370.38 billion (102.6 per cent of target) and the resilient non-oil customs revenue of Ksh618.40 billion (99.8 per cent of target). The sources of customs revenue were non-oil imports (62.5 per cent) and oil imports (37.5 per cent).
“Customs collected Ksh988.780 billion against a target of Ksh980.794 billion, achieving 100.8% performance. This was supported by above-target performance in oil revenue and strong non-oil collections,” KRA stated in its report.
The authority’s average daily customs collection was Ksh3.97 billion, while May 2026 had the highest monthly customs collection of Ksh88.94 billion. In eight of the 12 months under review, customs met or surpassed its monthly targets.
Domestic revenue remains the biggest contributor to revenue
Domestic taxes continued to be KRA’s primary source of revenue, as Ksh1.851 trillion was collected from domestic taxes out of a total of Ksh2.84 trillion collected in the financial year. But the figure was not up to the target of Ksh1.991 trillion, meaning the performance rate was 93 per cent, up 9.7 per cent from the previous financial year.
KRA attributed the rise to better collections in corporation tax, Pay As You Earn (PAYE) and Value Added Tax (VAT) for part of the year and the general goodwill of taxpayers in the major areas of the economy.
There has been a double-digit increase in exchequer and agency collections. Exchequer and agency collections see double-digit growth.
The Exchequer revenue collected by KRA for the National Government was Ksh2.568 trillion, representing 95.2 per cent of the target of Ksh2.698 trillion, with a growth of 10.5 per cent compared to the amount collected in the previous financial year.
The authority also noted that it collected Ksh276.1 billion for other government institutions as agency revenue with a 99.1 per cent performance and an 11.2 per cent increase. The agency collections covered the levies, such as the Road Maintenance Levy, Petroleum Development Levy, Housing Levy, KEBS Levy, NITA Levy, Sugar Levy and Water Levy.