KRA Collects Record KES 2.84 Trillion as Key Sectors Drive Strongest Revenue Growth in Years
Revenue collection for the Financial Year 2025/2026 registered a robust double-digit growth of 10.6%, significantly outperforming the 6.8% growth recorded in the previous financial year.
The Kenya Revenue Authority (KRA) collected KES 2.844 trillion, representing an increase of KES 272.953 billion over the KES 2.572 trillion collected in FY 2024/2025. The strong performance underscores sustained growth in domestic revenue mobilisation despite a challenging operating environment.
Five key sectors of the economy accounted for approximately 62.0% of total revenue. Manufacturing, Energy, Financial & Insurance, Information & Communication, and Wholesale & Retail Trade remained the country’s leading drivers of government revenue. These sectors that account for 27.4% of overall nominal GDP (raw economic metric not adjusted for inflation or deflation) recorded an aggregate revenue growth of 8.0%.
In particular, the Energy Sector registered a 9.1% revenue growth with a collection of KES 445 Billion, largely driven by good performance of Customs oil taxes. The sector contributed 15.6% of overall revenue that KRA collected for the FY 2025/2026.
The manufacturing sector recorded a revenue growth of 9.2% after registering collections amounting to KES 462 Billion, compared with KES 423 Billion collected in the previous FY. The key taxes accounting for 74.6% of this collection are Value Added Tax (VAT), Pay As You Earn (PAYE), Excise, and Corporation Tax. The sector contributed 16.2% of the overall revenue collected for the FY 2025/2026. Inputs to the sector in terms of raw material imports (food & beverages and industrial non-food supplies) accounted for 49.0% of the overall import value in the FY 2025/2026.
The Financial & Insurance Sector accounted for 11.3% of KRA revenue for the FY 2025/2026 with collections of KES 320 Billion, compared with KES 311 Billion collected in the previous FY. Corporation Tax accounted for 34.8% of collections in the sector, with a further 47.1% attributable to Withholding Income Tax and PAYE.
On the other hand, revenue from the Information & Communication Technology sector grew by 7.9% after KRA collected KES 248 Billion in the FY 2025/2026, compared with KES 230 Billion collected in the previous FY. The sector’s contribution to the total revenue was 8.7%. Significant revenue contributors for the sector included Excise (Airtime & Financial Services), Corporation Tax, Domestic VAT and PAYE among others.
The Wholesale & Retail Trade sector accounted for 10.1% of the total revenue collected in FY 2025/2026, yielding KES 288 Billion. This represents a growth of 10.3%, compared to the KES 261 Billion collected in the previous FY.
Revenue Performance for FY 2025/26
Exchequer Revenue
The Exchequer Revenue grew by 10.5% after a collection of KES 2.568 Trillion compared to KES 2.323 Trillion collected in the previous financial year. This translates to a performance rate of 95.2%, against a target of KES 2.698 Trillion.
Agency Revenue
Beyond its core tax collection mandate, KRA also collects various levies and charges on behalf of other government agencies. In FY 2025/26, the Agency Revenue grew by 11.2% after KRA collected KES 276.139 Billion compared to KES 248.276 Billion collected in the previous financial year. This translated to a performance rate of 99.1%, reflecting KRA’s growing capacity to efficiently collect agency levies.
Customs and Domestic Revenue Performance
Customs Revenue recorded a performance rate of 100.8% with a collection of KES 988.780 Billion against a target of KES 980.794 Billion. This translates to a revenue growth of 12.4%, compared to the same peri