Kenya tax revenue rises to Sh258.3 billion in September

Kenya recorded Sh258.31 billion in tax revenue in September 2026, representing a 14.85% increase compared to the previous year. This growth provides the Treasury with a stronger revenue base as the government manages public spending, debt obligations, and annual collection targets for the 2026/27 financial year.

The Kenya Revenue Authority (KRA) Customs and Border Control Department contributed significantly, collecting Sh90.053 billion. This performance exceeded the Treasury's monthly target by Sh965 million, achieving a 101.1% performance rate. This customs revenue was driven by a 5.8% year-on-year growth, largely fueled by increased imports of agricultural and industrial inputs such as fertilizers, iron, steel, palm oil, and rice.

Despite these gains, fiscal challenges persist. The KRA reported a Sh58.2 billion shortfall against its ordinary revenue target for the first quarter, with income tax and excise duty falling below projections. While import duty exceeded targets, the government faces a significant annual tax revenue target of approximately Sh2.86 trillion for the 2026/27 period.