KRA reports strong revenue growth in second half of FY 2025/26

By: 

Expression Africa

Kenya Revenue Authority (KRA) has commenced the second half of the 2025/26 Financial Year on a strong note, reporting KES 307.634 billion in December monthly collections against a target of KES 284.969 billion.

The collection rate represents a performance rate of 108 percent and a growth of 29.3 percent.  Exchequer revenue amounted to KES 284.265 billion against a target of KES 261.758 billion, recording a surplus of KES 22.507 billion. 

Exchequer revenue achieved a performance rate of 108.6 percent and grew by 30.1 percent compared to the same period in the previous financial year. 

During the month under review, Customs and Border Control collected KES 85.927 billion against a target of KES 83.008 billion, translating to a performance rate of 103.5 percent and a growth of 23.5 percent, compared to KES 69.555 billion collected in December 2024. 

In addition to surpassing the target, Customs recorded the highest monthly collection(KE 85.927 billion) in KRA’s history in December 2025, above the  second-highest monthly collection recorded in October 2025, when Customs collected KES 85.154 billion.

This historic performance is largely attributed to strong growth in oil taxes, which grew by 23.9 percent and recorded a performance rate of 103.7 per cent. 

The growth was driven by above-target performance across several tax heads, including VAT on Oil, Import Duty on Oil, Railway Development Levy (Oil), Petroleum Development Levy, Petroleum Regulatory Levy, and the Road Maintenance Levy Fund.

Non-oil taxes also performed strongly, recording a performance rate of 103.4 percent and a growth of 23.4 percent. This performance was largely supported by a 14.9 percent growth in non-oil import values, among other contributing factors.

Meanwhile, Domestic Tax collection amounted to KES 221.287 billion in December 2025 against a target of KES 201.593 billion, translating to a performance rate of 109.8 per cent. Domestic tax revenue grew by 31.7 percent, up from KES168.057 billion collected in December 2024. 

KRA remains optimistic about meeting the overall revenue target for the 2025/26  FinancialYear ,which stands at KES 2.968 trillion. This target represents a required growth of 15.4 percent over the KES 2.572 trillion collected in 2024/25 Financial Year.

The Authority appreciates compliant taxpayers for their continued contribution towards strengthening Kenya’s economic sustainability through timely filing and payment of their fair share of taxes.

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