KRA Beats Customs Revenue Target, Collects Sh988.78 Billion in FY 2024/25
Oil taxes, on the other hand, increased by 9.5 percent, with collections amounting to Sh370.383 billion, supported by stable global oil prices and improved cargo handling at the Port of Mombasa.
KRA chairperson Ndiritu Muriithi. Photo: Courtesy.
By Linda Olendo
The Kenya Revenue Authority (KRA) has surpassed its customs revenue target after collecting Sh988.78 billion in the financial year ending June 30, 2026, marking one of its best performances in recent years.
According to KRA, the collection exceeded its set target of Sh980.78 billion by 100.8 percent, driven by improved tax compliance, higher cargo volumes at the port of Mombasa and border points, and enhanced efficiency in customs operations.
Customs and Border Control (C&BC) Commissioner Dr. Lilian Nyawanda said the impressive revenue growth was sustained by technology-driven processes, improved risk management frameworks, and stronger collaboration with stakeholders in the import and export value chain.
“This historic performance demonstrates the effectiveness of our customs modernization programme and our continued commitment to balancing trade facilitation with revenue mobilization,” said Dr. Nyawanda.
She noted that customs revenue also reported a 12.4 percent growth year-on-year, rising from Sh879.23 billion collected in the previous financial year 2024/2025 to Sh988.78 billion in FY 2025/2026, representing an additional Sh109.55 billion.
KRA said customs achieved another historic milestone during the year after monthly collection hit a high of Sh89.08 billion, supported by strong performance in key tax heads including the Road Maintenance Levy (RML), Value Added Tax (VAT) on Ordinary Imports, Import Duty on Ordinary Imports, Import Declaration Fees (IDF), Railway Development Levy (RDL), and Excise Duty on Imports.
“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,” Dr. Nyawanda added.
The taxman attributed the growth in non-oil taxes, which grew by 14.3 percent to generate Sh618.397 billion, to increased imports of industrial machinery, raw materials and consumer goods as the economy rebounded. Oil taxes, on the other hand, increased by 9.5 percent, with collections amounting to Sh370.383 billion, supported by stable global oil prices and improved cargo handling at the Port of Mombasa.
Cumulatively, KRA says customs revenue over a five-year period has grown to Sh4.1 trillion, reflecting the impact of ongoing reforms such as the rollout of the Integrated Customs Management System (iCMS), pre-arrival clearance, use of scanners and artificial intelligence in risk profiling, and the Authorized Economic Operator (AEO) program.
KRA said it will continue to invest in modern technology, seal revenue leakages at border points, and enhance trade facilitation to sustain the growth momentum in the next financial year as it races to fund the government’s Sh4.2 trillion budget.
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