KRA Hits KSh2 Trillion Revenue Mark In Nine Months as Digital Reforms Boost Tax Collection

The Kenya Revenue Authority has surpassed the KSh2 trillion milestone in cumulative revenue collection for the 2025/26 financial year. By the end of the third quarter, the authority had collected KSh2.038 trillion, slightly below the target of KSh2.122 trillion.

KRA Commissioner General, Humphrey Wattanga, attributed the performance to reforms aimed at simplifying tax processes and enhancing digital integration. “The upward trajectory from KSh1.829 trillion collected over the same period in FY 2024/25 signals the resilience of the economy and resilience in revenue mobilisation,” the authority announced.

Customs operations led the way with KSh733.7 billion collected, a 100.9 per cent performance rate, up from KSh647.6 billion last year. Domestic taxes remained the largest contributor, yielding KSh1.301 trillion, marking a 10.4 per cent growth over the same period in the previous year. Revenue collected on behalf of other government entities reached KSh204.5 billion, reflecting a 10.7 per cent increase.

Despite these gains, exchequer revenue for the National Treasury fell slightly short of the target, totaling KSh1.834 trillion, achieving a 95.5 per cent performance rate.

KRA credited part of the success to digital tools. The Electronic Tax Invoice Management System (eTIMS) has improved invoice visibility and reduced VAT fraud. The GavaConnect Developer Portal now hosts over 2,500 developers, enabling businesses and fintech providers to integrate tax services directly into daily operations.

The authority also launched a WhatsApp-based tax filing service powered by the Shuru AI chatbot. Taxpayers can now file returns, generate invoices, access pre-filled data, and obtain compliance certificates directly through the messaging app.

However, challenges remain. Kenya’s revenue collection faces potential shortfalls due to disruptions in Middle East trade. Petroleum imports, generating about KSh30 billion monthly, are delayed, while other imports that contribute roughly KSh273 billion annually are at risk amid declining shipments.

KRA emphasized that deliberate institutional reforms, combined with deepening digital integration, have strengthened revenue mobilisation. “The performance reflects deliberate institutional reforms aimed at simplifying compliance, deepening digital integration, and embedding tax administration more seamlessly within everyday economic activity through data-driven administration,” the authority added.