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KRA revenue collections passed KSh1 trillion in the current financial year by the end of October 2026, the Kenya Revenue Authority says. It collected KSh1.010 trillion from July to October, reaching the milestone a month earlier than in previous financial years. October alone brought in KSh260.630 billion, beating the month’s KSh258.304 billion target.
Source: KRA press release, “KRA Hits One Trillion Mark, Records Historic Achievements in October 2026”, read on 7 November 2026. All figures are KRA’s own.
Key takeaways
- KRA revenue crossed KSh1 trillion for the financial year by the end of October, earlier than in previous years.
- October collections beat the monthly target by a small margin of about one percent.
- Customs had its best month ever, helped by strong non-oil taxes.
- Corporation tax was well above target, led by electricity, manufacturing, transport and wholesale firms.
- Domestic VAT only just beat its target, and bottled water excise collapsed after policy changes.
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KRA revenue for October 2026 in numbers
| Item | Collected | Target | Performance | Growth (year on year) |
|---|---|---|---|---|
| Total, October 2026 | KSh260.630bn | KSh258.304bn | 100.9% (surplus KSh2.327bn) | 15.5% |
| Customs | KSh94.793bn | Not stated | 101.1% (surplus KSh1.009bn) | 11.3% |
| Domestic revenue | KSh165.447bn | KSh164.110bn | Surplus KSh1.337bn | 18.1% |
| Corporation tax | KSh23.932bn | KSh20.077bn | 119.2% | 31.6% |
| Domestic VAT | KSh33.367bn | KSh33.323bn | Surplus KSh45m | 22.1% |
| Domestic excise | Not stated | Not stated | Surplus KSh945m | 54.1% |
| July–October 2026 total | KSh1.010trn | Milestone reached a month earlier than in previous years | ||
KRA says October’s 15.5% growth compares with 8.0% in October 2025 and 6.5% in October 2024.
Customs: a record month for KRA revenue
Customs collected KSh94.793 billion in October 2026, which KRA says is its highest monthly collection ever. The previous best was KSh92.527 billion in July 2026. Customs beat its target by KSh1.009 billion. Non-oil taxes drove the result, with a KSh7.243 billion surplus and 26.0% growth.
Domestic taxes beat target
Domestic revenue reached KSh165.447 billion. KRA says domestic VAT, domestic excise, corporation tax, individual income tax, capital gains tax and stamp duty all came in above target.
Corporation tax was the standout at 119.2% of target. KRA says four sectors (electricity, manufacturing, transportation and wholesale) made up about 81% of October’s corporation tax. Their instalment tax grew by an average of 38.1% in the month, against 35.9% for July to October.
Domestic VAT only just beat its target, by KSh45 million. KRA says gross domestic VAT growth sped up to 21.9% in September and October, from 12.2% in July and August.
Excise: beer, spirits and tobacco up, bottled water down
KRA says domestic excise beat its target for the first time in a long period. Manufacturers’ remittances changed as follows:
- keg beer: up 0.3%;
- premium beer: up 43.5%;
- wine and spirits: up 110.8%;
- tobacco: up 94.1%;
- soft drinks: down 4.8%;
- bottled water: down 96.4%, which KRA attributes to policy changes.
KRA links the rises in premium beer, wine and spirits, and tobacco to higher deliveries.
KRA revenue target for 2026/27
KRA’s target for the full 2026/27 financial year is KSh3.268 trillion. With KSh1.010 trillion collected in the first four months, about KSh2.258 trillion is left for the remaining eight months, roughly KSh282 billion a month. That is our arithmetic from KRA’s figures, not a KRA projection, and it is above October’s KSh260.6 billion. The Treasury had already cut revenue targets for the year; see our report on the 2026/27 revenue target cut.
What the KRA revenue numbers mean for business
Strong corporation tax instalments suggest higher expected profits in electricity, manufacturing, transport and wholesale firms, because instalment tax is paid on estimated current-year profit. The near-miss on domestic VAT shows how narrow some margins are. Earlier in the year KRA reported a shortfall across PAYE, VAT and oil taxes; see our KSh132bn shortfall report. Businesses should expect continued compliance drives as KRA chases the full-year number.
Importers should note that the record customs month came from non-oil taxes rather than fuel. It also came as KRA tightened its consolidated cargo rules; see our explainer on KRA consolidated cargo clearance. For drinks and tobacco makers, the excise figures show which product lines are paying more tax this year and which are paying less.
How to read KRA revenue reports
KRA reports each tax head in three ways, and they answer different questions. The performance rate compares what was collected with the target the Treasury set for that month, so 100.9% means collections came in just ahead of plan. Growth compares collections with the same month a year earlier, which shows whether the tax base is expanding regardless of how ambitious the target was. The surplus is simply collections minus target, in shillings.
A tax head can beat its target while growing slowly, or miss its target while growing fast, so read the three together. In October, domestic VAT barely beat its target but grew strongly year on year, while corporation tax did well on both. Keep in mind that monthly figures can move because of payment timing, for example when instalment tax falls due, so one strong month is not yet a trend.
Frequently asked questions
How much did KRA collect in October 2026?
KSh260.630 billion, against a target of KSh258.304 billion.
When did KRA revenue pass KSh1 trillion?
By the end of October 2026, with KSh1.010 trillion collected since July, a month earlier than in previous financial years.
What is KRA’s 2026/27 revenue target?
KSh3.268 trillion.
Why did bottled water excise fall?
KRA attributes the 96.4% fall in bottled water remittances to policy changes, without giving details.
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