Kenya Revenue Authority Surpasses KSh 2 Trillion Mark Amid Strategic Digital Transformation Efforts

Kenya Revenue Authority nears its 2026 goal with KSh 2.038 trillion collected. See how new AI tools and customs reforms are driving fiscal growth.

By: AXL Media

Published: Apr 8, 2026, 10:14 AM EDT

Source: Information for this report was sourced from TUKO.co.ke

Fiscal Resilience in a Demanding Economic Climate

The Kenya Revenue Authority has reached a significant milestone by collecting KSh 2.038 trillion by the end of the third quarter on March 31, 2026. This figure represents an 11.4% increase compared to the KSh 1.829 trillion gathered during the same period in the previous financial year. According to data provided by the authority, this trajectory indicates a steady recovery for the national economy, even as global trade uncertainties and rising business costs continue to weigh on local markets. The current collection accounts for 96.1% of the cumulative target, leaving the agency with one final quarter to bridge the gap toward its annual goal of KSh 2.97 trillion.

Customs Efficiency and Domestic Tax Performance

Domestic taxes remain the cornerstone of the revenue stream, contributing KSh 1.301 trillion and marking a 10.4% growth over the prior year. However, the Customs and Border Control department emerged as a standout performer, exceeding its specific targets with a 100.9% performance rate to deliver KSh 733.7 billion. This 13.3% surge in customs revenue is attributed largely to the Centralised Release Office, which has streamlined cargo clearance. Growth in non-oil imports, including vehicles, cereals, and machinery, further bolstered these figures, with non-oil taxes alone surpassing projections by KSh 3.555 billion.

Navigating Macroeconomic Pressures and Currency Shifts

The revenue milestones were achieved against a backdrop of subdued consumer demand and elevated inflation, which reached 4.4% in March 2026. While household purchasing power remained soft, the Kenyan shilling provided a vital counterbalance by averaging KSh 129.23 against the US dollar throughout the period. This appreciation is expected to mitigate the costs of imported goods and support domestic demand in the coming months. Despite these hurdles, GDP growth accelerated to 4.9% in the third quarter of 2025, providing a slightly more favorable environment for revenue mobilization than the previous year.