KRA Eyes Ksh 2.97 Trillion Target Amid Strong Customs and Digital Tax Gains

Kenya Revenue Authority (KRA) has crossed a historic milestone, collecting over Ksh 2 trillion in revenue within nine months, signaling a strong rebound in tax performance despite a challenging economic environment.

According to a statement released on April 7, 2026, KRA reported cumulative revenue collections of Ksh 2.038 trillion as of March 31, 2026, representing an 11.4% growth compared to the same period in the previous financial year. The performance translates to a 96.1% achievement against a target of Ksh 2.122 trillion.

This marks a notable increase from the Ksh 1.829 trillion collected during a similar period in the 2024/25 financial year, reflecting improved compliance and economic resilience.

Steady Growth Across Quarters

KRA attributed the growth to consistent quarter-on-quarter performance, driven by reforms aimed at simplifying tax compliance and embedding digital solutions into tax administration.

Customs and Border Control emerged as a standout performer, surpassing its target with a 100.9% achievement rate and collecting Ksh 733.7 billion—an increase of 13.3% from the previous year.

Domestic taxes remained the largest contributor, generating Ksh 1.301 trillion, reflecting a 10.4% growth. Meanwhile, agency revenue collected on behalf of other government entities stood at Ksh 204.452 billion, exceeding its target and growing by 10.7%.

Exchequer revenue collections reached Ksh 1.834 trillion, representing an 11.5% increase year-on-year, though slightly below the set target.

Economic Pressures and Resilience

The revenue performance comes against a backdrop of economic headwinds, including reduced household purchasing power, high business costs, and global trade uncertainties.

However, some indicators provided relief. Kenya’s GDP grew by 4.9% in the third quarter of 2025, up from 4.2% in 2024. Inflation stood at 4.4% in March 2026, while the Kenyan shilling averaged Ksh 129.23 against the US dollar during the period.

These factors helped stabilize economic activity and supported revenue mobilization efforts.

Digital Innovations Driving Compliance

KRA’s performance has also been boosted by a series of digital and administrative reforms aimed at improving compliance and accessibility.

Key among them is the Electronic Tax Invoice Management System (eTIMS), which enhances transparency and reduces VAT fraud. Additionally, the GavaConnect platform has onboarded over 2,500 developers, enabling businesses to integrate tax services directly into their systems.

In a bid to widen the tax base, KRA has also introduced a WhatsApp-based tax filing system powered by an AI chatbot known as “Shuru,” allowing taxpayers to file returns and access services seamlessly.

Further innovations include USSD-based services accessible via *222#5#, ensuring even users without smartphones can interact with KRA systems.

Outlook for Full-Year Target

With one quarter remaining, KRA is now focused on closing the gap toward its ambitious annual target of Ksh 2.97 trillion.

The authority plans to intensify compliance measures, expand its bank agent model, and leverage technology to sustain growth momentum.

As Kenya continues to navigate economic uncertainties, KRA’s performance underscores the growing role of digital transformation and administrative efficiency in driving revenue collection—key to funding national development priorities.

Read Also: KRA Plans to Reach 22 Million Taxpayers Using a WhatsApp Chatbot