The Kenya Revenue Authority has posted a strong start to the second half of the 2025 and 2026 financial year, easing pressure after missing its revenue target in the first six months.
KRA collected Kshs 307.6 billion in December 2025, exceeding its monthly target of Kshs 285.0 billion, according to official data. The outturn represents a performance rate of 108 per cent and growth of 29.3 per cent compared with the same month last year.
Exchequer revenue amounted to Kshs 284.3 billion, surpassing the target by Kshs 22.5 billion and recording a performance rate of 108.6 per cent. The figure marked a 30.1 per cent increase from December 2024, offering relief to the Treasury amid rising debt servicing costs.
The improved performance was driven by strong collections across both domestic and customs taxes. Domestic taxes rose to Kshs 221.3 billion against a target of Kshs 201.6 billion, translating to a performance rate of 109.8 per cent and growth of 31.7 per cent from a year earlier.
Customs and Border Control recorded Kshs 85.9 billion, beating the target and marking the highest monthly customs collection in KRA’s history. The performance was largely supported by oil related taxes, which grew by 23.9 per cent on the back of higher receipts from value added tax on oil, import duty and fuel related levies.
Non oil taxes also exceeded expectations, posting a performance rate of 103.4 per cent and growth of 23.4 per cent, helped by a rise in non oil import values.
The December rebound follows a weak first half of the financial year, when KRA collected about 88 per cent of its mid year target, raising concerns over the government’s ability to meet its revenue goals without additional borrowing or spending cuts.
With an annual target of Kshs 2.968 trillion, representing required growth of 15.4 per cent from the previous financial year, sustaining the December momentum will be critical. Analysts caution that while the strong monthly performance is encouraging, consistent collections will be needed to close the gap created earlier in the year.
raKRA has attributed the improved performance to enhanced compliance, enforcement measures and the use of digital tools, while urging taxpayers to continue filing and paying taxes on time as the government seeks to stabilise public finances and support economic growth.
