KRA Reports 11% Third Quarter Revenue Growth to Ksh 2.04 Trillion

Femi Wanjala
3 Min Read

The Kenya Revenue Authority (KRA) has announced a revenue collection of Ksh 2.04 trillion for the third quarter of the 2025/26 financial year, representing an 11.4% growth compared to the same period last year. Despite the double-digit increase, the tax man narrowly missed its quarterly target of Ksh 2.12 trillion, achieving a performance rate of 96.1%.

A standout performer in the report was the Customs and Border Control department, which surpassed its targets with a performance rate of 100.9%. Enhanced enforcement and compliance measures saw customs revenue jump by 13.3% to Ksh 733.7 billion, up from Ksh 647.6 billion in the previous quarter.

KRA Commissioner General Humphrey Wattanga attributed the steady growth to improved taxpayer compliance and a gradual strengthening of economic activity, despite a challenging macroeconomic backdrop.

“Revenue performance was delivered within a still-constrained macroeconomic environment marked by subdued household purchasing power, soft consumer demand, elevated business costs, and continued global trade uncertainty,” Wattanga noted. “This resilience demonstrates continued taxpayer responsiveness.”

Key Revenue Highlights (Q3 FY 2025/26)

Revenue CategoryAmount CollectedPerformance RateGrowth
Total RevenueKsh 2.04 Trillion96.1%11.4%
Domestic RevenueKsh 1.3 Trillion10.0%
Customs RevenueKsh 733.7 Billion100.9%13.3%
Agency RevenueKsh 204.5 Billion101.4%10.7%
Exchequer RevenueKsh 1.8 Trillion95.5%11.5%

Export to Sheets

Domestic revenue remains the primary engine for the Authority, contributing Ksh 1.3 trillion. Meanwhile, Agency revenue—collected on behalf of other government entities—beat its target by 1.4%, rising to Ksh 204.5 billion.

The Road to June 30

The National Treasury has set an ambitious annual target of Ksh 2.97 trillion for the KRA this financial year. To meet this goal, the Authority must collect approximately Ksh 930 billion in the final quarter (April to June 30, 2026).

The KRA plans to leverage technology, including the continued rollout of the eTIMS system and integrated data analytics, to close the gap and monitor high-net-worth sectors. However, analysts suggest that meeting the near-trillion-shilling target in three months will require significant momentum in the manufacturing and services sectors.

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