As at the close of the third quarter of the 2025/2026 financial year, the Kenya Revenue Authority had collected taxes amounting to KES 2.038 trillion against a KES 2.122 target. The tax collections as of Q3 FY 25/26 represented 11.4% year-on-year growth relative to the same period in the prior fiscal year.
The tax collections for the period to the end of Q3 2025/2026 are KES 84 billion short of the target. The Authority has attributed the growth to reforms simplifying compliance, digital capabilities, and data-driven administration.
The outturn in tax revenue was on the back of growth recorded across various engines including exchequer revenue, domestic taxes, customs and border control, and Agency revenue.
- Exchequer revenue contributed the bulk of the collections in the period under review, with total collections on behalf of the National Treasury amounting to KES 1.834 trillion(up 11.5% year-on-year) against a target of KES 1.921 trillion.
- Collection of domestic tax yielded KES 1.301 trillion, representing a growth of 10.4% as compared to the same period in the previous year.
- In the Customs and Border Control segment, collections were up 13.3% year-on-year to KES 733.7 billion.
- Revenue collected on behalf of the government entities (Agency revenue) exceeded its target of KES 201.7 billion by collecting KES 204.5 billion, which was a growth of 10.7% compared to the collections in the previous year.
According to the Authority, the growth in collections the first three quarters of the fiscal year indicates improvement in the consistency of compliance among tax payers, as well as strengthening of economic activity in the country.
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