Kenya Revenue Authority (KRA) has made history, collecting a record Sh251.52 billion in December 2025 – 15.88 per cent higher than last year and surpassing June’s previous peak of Sh246.36 billion.
The surge comes as KRA steps up digital tools and stricter compliance rules, making it easier for taxpayers to pay and harder to avoid.
Three major moves drove the record haul:
- Electronic Rental Income Tax System (eRITS): Launched in September, this system targets Sh100 billion in previously untapped rental income, pushing landlords to declare earnings and pay up.
- Automated Payment Plans (APPs): Introduced in November, APPs let taxpayers settle liabilities in up to six instalments, easing pressure on businesses and individuals while boosting timely collections.
- Tightened Compliance Rules: From October, registering under eTIMS and following the VAT Special Table became mandatory to secure a Tax Compliance Certificate (TCC), prompting a wave of businesses to regularise their status.
Spending in December included Sh214.57 billion on recurrent costs, Sh23.20 billion for development projects, and Sh35.28 billion as counties’ equitable share, with Sh75.84 billion going to public debt servicing.
The milestone shows the power of digitalisation and compliance enforcement. Analysts say these strategies not only swell government coffers but also encourage a culture of tax responsibility among businesses and individuals.
