KRA announces record-breaking October revenue as customs collections hit historic high

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KRA announces record-breaking October revenue as customs collections hit historic high

The Kenya Revenue Authority (KRA) has announced a record-breaking revenue performance after collecting Ksh260.63 billion in October 2026, with Customs recording its highest-ever monthly collections in the history of the tax agency.

KRA said on Thursday, November 5, 2026, that it had surpassed its October revenue target of Ksh258.304 billion, collecting Ksh2.327 billion above the target.

The October collections represented a growth of 15.5 per cent compared to the corresponding period in the previous financial year, with the Authority attributing the performance to improved collections from both Customs and Domestic Revenue.

The latest figures also pushed KRA’s cumulative revenue collection beyond the Ksh1 trillion mark, with the taxman reporting collections of Ksh1.010 trillion by the end of October.

“Kenya Revenue Authority (KRA) has surpassed the KES 1 trillion mark in revenue collection, after raising KES 1.010 trillion by the end of October 2026. This achievement reflects a positive trajectory in revenue mobilisation, with the Authority attaining the milestone a month earlier than in previous financial years,” KRA said in a statement posted on its official website.

“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. This represents a performance rate of 100.9 per cent, translating into a surplus of KES 2.327 billion above the target. The October performance reflects a revenue growth of 15.5 per cent, compared to growth rates of 8.0 per cent and 6.5 per cent recorded in October 2025 and October 2024, respectively. The good performance is attributed to stellar performance by both Customs and Domestic Revenue.”

The Authority said it had attained the milestone a month earlier than in previous financial years, describing the development as evidence of a positive trajectory in revenue mobilisation.

Customs and Border Control emerged as one of the major drivers of the October performance after collecting Ksh94.793 billion, the highest monthly revenue collection recorded by the department in KRA’s history.

The collections represented a growth of 11.3 per cent compared to October last year and surpassed the monthly target by Ksh1.009 billion, translating into a performance rate of 101.1 per cent.

KRA attributed the strong performance largely to non-oil taxes, which recorded a surplus of Ksh7.243 billion and growth of 26 per cent.

The October figure surpassed the previous monthly record of Ksh92.527 billion, which was collected in July 2026.

The latest performance comes amid increased scrutiny of the role of imports and international trade in supporting government revenue.

In September 2026, Customs collections had also exceeded the monthly target, with KRA collecting Ksh90.053 billion against a target of Ksh89.088 billion.

“Customs recorded its highest-ever monthly revenue collection after collecting KES 94.793 billion in Oct 2026, the highest monthly collection in KRA history. Second best collection of KES 92.527 billion was realized in Jul 2026. Customs collected a surplus of KES 1.009 billion registering a performance rate of 101.1% and growth of 11.3% compared to the same period in the last financial year. The performance was driven by non-oil taxes which recorded a surplus of KES 7.243 billion and a growth of 26.0%,” KRA stated.

The September performance was partly supported by an increase in the value of imports, which rose by 25.6 per cent, according to figures reported by the tax agency.

Domestic revenue collection also exceeded expectations, reaching Ksh165.447 billion against a target of Ksh164.110 billion.

The department surpassed its target by Ksh1.337 billion, registering growth of 18.1 per cent compared to the corresponding period last year.

KRA attributed the performance to above-target collections across several major tax categories, including Domestic Value Added Tax (VAT), Domestic Excise Duty, Corporation Tax, Individual Income Tax, Capital Gains Tax and Stamp Duty.

Corporation Tax collections stood at Ksh23.932 billion against a target of Ksh20.077 billion, representing a performance rate of 119.2 per cent and a growth of 31.6 per cent.

Four sectors, electricity, manufacturing, transportation and wholesale, accounted for approximately 81 per cent of Corporation Tax collections during the month.

The sectors also recorded an average instalment tax growth of 38.1 per cent in October, according to KRA.

Domestic VAT collections reached Ksh33.367 billion, slightly exceeding the monthly target of Ksh33.323 billion by Ksh45 million.

The collections represented growth of 22.1 per cent compared to October last year.

Domestic Excise Duty recorded one of the strongest performances, surpassing its target for the first time in a long period.

KRA collected Ksh945 million above the monthly target, with the tax head registering growth of 54.1 per cent.

The increase was driven by higher remittances from manufacturers of alcoholic beverages and tobacco products.

According to the Authority, manufacturers of keg beer, premium beer, wine and spirits, and tobacco recorded respective growth rates of 0.3 per cent, 43.5 per cent, 110.8 per cent and 94.1 per cent.

The strong performance in wine, spirits and tobacco collections was attributed to increased product deliveries.

However, collections from manufacturers of soft drinks and bottled water declined by 4.8 per cent and 96.4 per cent, respectively, with KRA linking the sharp decline in bottled water collections to policy changes.

The October performance comes as the Authority pursues an ambitious revenue target of Ksh3.268 trillion for the 2026/27 financial year.

KRA’s latest milestone follows a record collection of Ksh2.844 trillion in total revenue during the 2025/26 financial year, representing growth of 10.6 per cent compared to the Ksh2.572 trillion collected in the previous financial year.

The previous financial year’s performance was supported by collections from key economic sectors, including manufacturing, energy, financial and insurance services, information and communication technology, and wholesale and retail trade.

However, the revenue mobilisation drive has faced challenges, with Treasury figures showing that ordinary revenue receipts fell short of the first-quarter target by Ksh58.2 billion in the three months to September 2026, despite recording year-on-year growth.

The October figures therefore mark an important improvement in the Authority’s monthly performance, although sustained collections will be necessary for KRA to meet its annual target.

The tax agency has continued to rely on improved tax administration, compliance measures and expansion of the tax base to strengthen revenue collection.

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