NAIROBI, Kenya, July 10 – The Kenya Revenue Authority (KRA) collected Sh2.84 trillion in taxes during the 2025/26 financial year, representing a 10.6 percent increase from the Sh2.57 trillion raised in the previous fiscal year, driven by strong performance across key sectors of the economy.
According to KRA, five sectors – manufacturing, energy, financial and insurance, information and communication, and wholesale and retail trade – accounted for about 62 percent of the total revenue collected during the year.
Manufacturing remained the largest contributor, generating Sh462 billion, up from Sh423 billion in the 2024/25 financial year.
The energy sector followed with Sh445 billion, supported largely by robust growth in customs oil taxes.
Revenue from the financial and insurance sector increased to Sh320 billion from Sh311 billion, while the information and communication sector contributed Sh248 billion.
KRA said the wholesale and retail trade sector generated Sh288 billion, representing 10.1 percent of total revenue and a 10.3 percent increase from Sh261 billion collected in the previous financial year.
“The Wholesale & Retail Trade sector accounted for 10.1% of the total revenue collected in FY 2025/2026, yielding KES 288 Billion. This represents a growth of 10.3%, compared to the KES 261 Billion collected in the previous FY.”
Revenue collected on behalf of the National Government through taxes, duties and fees rose by 10.5 percent to Sh2.56 trillion from Sh2.32 trillion a year earlier.
Agency revenue also posted strong growth, increasing by 11.2 percent to Sh276.1 billion compared to Sh248.2 billion collected in the previous financial year.
Customs revenue exceeded its target, with collections reaching Sh988.78 billion against a target of Sh980.79 billion, translating to a performance rate of 100.8 percent.
“Customs Revenue recorded a performance rate of 100.8% with a collection of KES 988.780 Billion against a target of KES 980.794 Billion.”
Among the major tax heads, Pay As You Earn (PAYE) collections grew by 6.7 percent to Sh598.8 billion, while domestic Value Added Tax (VAT) revenue increased by 8.5 percent to Sh355.25 billion.
The improved collections come as the tax authority intensifies compliance measures and digital tax administration reforms aimed at boosting domestic revenue to support government spending and reduce reliance on borrowing.
