The Kenya Revenue Authority (KRA) has surpassed its customs revenue target for the 2025/26 financial year after collecting Sh988.78 billion, reflecting strong growth driven by improved tax compliance, increased cargo volumes and enhanced use of technology.
The revenue exceeded the authority’s target of Sh980.78 billion, representing a performance rate of 100.8 per cent, according to KRA.
Technology and compliance drive record collections
Commissioner for Customs and Border Control Dr Lilian Nyawanda attributed the strong performance to the agency’s continued customs modernisation programme, improved risk management systems and closer collaboration with traders and other stakeholders.
“This historic performance demonstrates the effectiveness of our customs modernisation programme and our continued commitment to balancing trade facilitation with revenue mobilisation,” Nyawanda said.
She added that KRA deliberately invested in technology, strengthened compliance measures and enhanced partnerships with the trading community to protect government revenue while facilitating trade.
“We were deliberate in leveraging technology, strengthening compliance and deepening partnerships with the trading community as we continue to safeguard government revenue while supporting Kenya’s position as a regional trade and logistics hub,” she said.
Revenue grows by 12.4 per cent
Customs revenue increased by 12.4 per cent compared to the previous financial year, when the authority collected Sh879.23 billion.
KRA also recorded its highest-ever monthly customs revenue collection of Sh89.08 billion, supported by strong performance across several tax streams.
These included the Road Maintenance Levy (RML), Value Added Tax (VAT) on ordinary imports, Import Duty, Import Declaration Fees, the Railway Development Levy, and Excise Duty on imports.
Non-oil taxes outperform
According to KRA, non-oil taxes posted the strongest growth during the financial year, rising 14.3 per cent to generate Sh618.397 billion.
Meanwhile, oil-related taxes increased by 9.5 per cent, contributing Sh370.383 billion to the overall customs revenue.
The authority said the growth reflects stronger import activity and continued improvements in revenue administration.
Five-year collections hit Sh4.1 trillion
KRA noted that customs revenue has continued to register steady growth over the past five years.
Cumulative customs collections have now reached Sh4.1 trillion, underscoring the increasing contribution of customs operations to national revenue mobilisation.
The authority said it will continue implementing technology-driven reforms, strengthening compliance and facilitating legitimate trade as it seeks to sustain revenue growth while positioning Kenya as a leading regional trade and logistics hub.
