Authority attributes performance to digital reforms and simplified compliance, even as global headwinds pose fresh risks to the remainder of the year
The Kenya Revenue Authority has recorded a significant milestone in its revenue mobilisation effort, surpassing the Ksh2 trillion mark for the first time in a single financial year’s first three quarters. By March 31, 2026, KRA had collected Ksh2.038 trillion — up from Ksh1.829 trillion over the same period in the 2024/25 financial year, representing year-on-year growth of approximately 11.4 percent.
The announcement, made by Commissioner General Humphrey Wattanga on Tuesday, April 7, acknowledged that while the figure falls short of the Ksh2.122 trillion target set for the period, the trajectory signals sustained momentum in the country’s tax administration capacity.
“The upward trajectory signals the resilience of the economy and resilience in revenue mobilisation,” Wattanga said in the official statement.
Customs Leads on Performance; Domestic Taxes Remain the Largest Base
Within the overall collection, two revenue streams drove the bulk of the numbers.
Customs operations emerged as the standout performer, achieving a 100.9 percent performance rate against its set target and collecting Ksh733.7 billion — a marked improvement from the Ksh647.6 billion recorded over the same period the previous year. This growth points to stronger import activity and improved compliance monitoring at the border.
Domestic taxes, the single largest contributor to KRA’s revenue base, yielded Ksh1.301 trillion for the nine-month period, reflecting 10.4 percent growth compared to the prior year. The segment encompasses income tax, value-added tax, and excise duty, among other levies on locally generated economic activity.
Revenue collected on behalf of other government agencies and entities reached Ksh204.5 billion, growing 10.7 percent year-on-year — an indication of improved coordination between KRA and other public institutions it services.
Exchequer revenue remitted to the National Treasury totalled Ksh1.834 trillion, reflecting a performance rate of 95.5 percent against target — a slight shortfall but broadly in line with the broader trend of near-target delivery.
Digital Tools Credited for Efficiency Gains
KRA attributed much of the performance improvement to a deliberate push to digitise and streamline the tax compliance experience, making it easier for businesses and individuals to meet their obligations without navigating complex manual processes.
The Electronic Tax Invoice Management System, known as eTIMS, was highlighted as a key instrument in improving invoice visibility and reducing exposure to VAT fraud. By digitising the invoicing chain, the system allows the authority to cross-check transaction data in real time, limiting the scope for manipulation or under-declaration.
The authority’s enterprise API platform, GavaConnect, has grown to host more than 2,500 registered developers — a figure that reflects increasing private sector appetite to embed tax services directly into business systems and financial technology products. The platform allows companies to integrate KRA services such as tax filing, invoice generation, and compliance verification into their own digital infrastructure, reducing friction and encouraging voluntary compliance.
Perhaps the most consumer-facing innovation unveiled alongside the quarterly results was a WhatsApp-based tax filing service powered by an AI chatbot named Shuru. The tool allows individual taxpayers to access pre-filled tax details, file returns, generate invoices, and obtain compliance certificates — all through a familiar mobile messaging interface. The approach is designed to lower the barrier to compliance, particularly for small business owners and the self-employed who may lack dedicated accounting support.
“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,” KRA said in its statement.
Global Risks Cloud the Final Quarter Outlook
Despite the strong showing through the third quarter, KRA’s full-year performance faces emerging headwinds tied to global geopolitical instability — particularly the ongoing conflict in the Middle East.
Petroleum-related imports, which generate in the region of Ksh30 billion in taxes and levies every month, are facing shipment delays as disruptions in key shipping corridors persist. Separately, imports originating from the Middle East — which collectively contribute approximately Ksh273 billion in annual tax revenue — are at risk of declining as trade flows are affected by regional instability.
Should these pressures intensify over the final quarter of the financial year, the authority’s ability to close the remaining gap to its full-year revenue target could be constrained, even with continued gains on the domestic tax front.
KRA has not yet indicated whether it will revise its full-year targets in response to these external pressures, but the fourth quarter will test whether the gains from digital reform are sufficient to offset the impact of slower import volumes.
