• Kenya tax revenue rises to 2.038 trillion shillings by March

• Growth driven by reforms, digitalisation, and stronger compliance

• Collections reach 96% of target amid economic pressures

The Kenya Revenue Authority (KRA) collected 2.038 trillion Kenyan shillings ($15.8 billion) in tax revenue by March 31, 2026, up from 1.829 trillion shillings in the same period a year earlier, according to a statement released on Tuesday.

Domestic taxes remained the main revenue source at 1.301 trillion shillings, followed by customs duties at 733.7 billion. The authority collected 204.45 billion shillings on behalf of other agencies, while receipts paid into the Treasury totalled 1.834 trillion.

The KRA said the increase in revenue reflected the resilience of the economy and improved revenue mobilisation. The outturn represents a 96.1% collection rate against a target of 2.122 trillion shillings and an 11.4% year-on-year increase.

The performance follows ongoing reforms aimed at strengthening domestic resource mobilisation. The KRA cited progress in simplifying procedures, expanding digital systems and improving data use to broaden the tax base.

To sustain the trend, the authority stepped up compliance efforts, including the rollout of the electronic invoicing system (eTIMS), the GavaConnect platform, a WhatsApp filing service and USSD solutions to widen access. Customs procedures were also reinforced with new transparency tools.

With one quarter remaining in the fiscal year, KRA is slightly below its full-year target of 2.970 trillion shillings but said it remains confident of meeting it, supported by intensified audits and continued digitalisation.

The results come against a backdrop of moderate domestic demand, strained household purchasing power and elevated business costs amid global trade uncertainty. Still, some indicators remain supportive, including IMF estimates of 4.8% GDP growth in 2025, up 0.1 percentage points from 2024.

Carelle Yourann