The Kenya Revenue Authority (KRA) Customs and Border Control department recorded a revenue collection of Ksh988.8 billion in the 2025/26 financial year, surpassing its target of Ksh980.8 billion. This represents a performance rate of 100.8 percent, driven by increased trade volumes, enhanced compliance, and the adoption of advanced digital tools.

Digital Innovations Enhance Customs Efficiency

KRA credited its strong performance to technology upgrades and improved stakeholder collaboration. The eCustoms Mobile Application has reduced compliance costs and improved service accessibility for cross-border traders. Additionally, the Authorized Economic Operator programme continued to support compliant trade operations.

Further improvements were made through an upgraded Integrated Customs Management System, enhancing operational efficiency. KRA also signed a memorandum of understanding with India’s Central Board of Indirect Taxes and Customs to enable real-time exchange of pre-arrival cargo information, facilitating faster clearance and better risk management.

Oil-related revenue accounted for Ksh370.4 billion, while non-oil streams contributed Ksh618.4 billion during the year.

Overall Revenue Growth

The customs performance contributed to an overall KRA revenue collection of Ksh2.844 trillion, a 10.6 percent increase from the previous financial year. Exchequer revenue rose by 10.5 percent to Ksh2.568 trillion, while agency revenue grew 11.2 percent to Ksh276.1 billion.

Domestic taxes, which made up 93 percent of the target, reached Ksh1.851 trillion. Key sectors driving collections included manufacturing (Ksh462 billion), energy (Ksh445 billion), financial and insurance services (Ksh320 billion), wholesale and retail trade (Ksh288 billion), and ICT (Ksh248 billion).

Notable tax category growth included a 14 percent increase in Corporation Tax to Ksh347.1 billion, a 6.7 percent rise in PAYE to Ksh598.8 billion, and an 8.5 percent growth in domestic VAT to Ksh355.3 billion.

Future Plans

KRA plans to expand electronic invoicing, implement more artificial intelligence tools, introduce Virtual Electronic Tax Registers, and scale up digital services to further enhance revenue collection and trade facilitation.