The Kenya Revenue Authority (KRA) collected Ksh307.634 billion in December, exceeding its target of Ksh284.969 billion. This represents a performance rate of 108.0 percent and a growth of 29.3 percent compared to the same month last year.
Exchequer revenue amounted to Ksh284.265 billion against a target of Ksh261.758 billion, creating a surplus of Ksh22.507 billion. Authorities stated that strategic enforcement and sector-specific growth significantly contributed to this historic performance.
Several sectors performed strongly during the 31 days of collection, boosting both domestic and customs revenue. KRA emphasized that intelligence-led operations allowed the Authority to address underperformance and improve overall compliance efficiently.
Customs Department Achieves Record Collection in December
The Customs Department collected Ksh85.927 billion, surpassing its target of Ksh83.008 billion with a 103.5 percent performance rate. Officials noted that this represents the highest monthly collection in KRA’s history, surpassing October 2025 as the previous record.
Authorities attributed the growth to enhanced border monitoring, strict compliance checks, and enforcement against under-declared imports. Customs collections remain critical in supporting national revenue and sustaining government development initiatives across multiple sectors.
KRA confirmed that continuous inspections and audits strengthened compliance and reduced revenue leakage across imported goods. Authorities added that trade facilitation, combined with strict enforcement, ensured both domestic and international traders met tax obligations.
Oil Taxation Drives Revenue Growth in December
Oil-related taxes grew by 23.9 percent, achieving a performance rate of 103.7 percent and exceeding expectations. Collections from VAT on oil, import duties, the Railway Development Levy, Petroleum Development Levy, Petroleum Regulatory Levy, and Road Maintenance Levy contributed significantly.
Officials emphasized that compliance by petroleum distributors and importers strengthened revenue performance, ensuring timely remittance of both domestic and imported taxes. Authorities confirmed that sustained oil tax collections directly support infrastructure, road maintenance, and other national development projects efficiently.
Targeted interventions at high-volume oil import points prevented evasion and improved audit results substantially. Authorities highlighted that combined monitoring, reporting, and enforcement ensured accountability across all oil-related tax heads in December.
Non-Oil Taxes Also Perform Strongly
Domestic tax collection reached Ksh221.287 billion, exceeding the target of Ksh201.593 billion with a performance rate of 109.8 percent. Authorities confirmed that non-oil taxes, including VAT, income tax, and corporate tax, recorded strong growth driven by compliance and targeted interventions.
Digital filing, audits, and taxpayer education improved compliance and reduced revenue leakage significantly during December. Strategic interventions in high-value sectors, including manufacturing, finance, and services, contributed substantially to overall non-oil revenue growth.
Officials highlighted that ongoing enforcement and monitoring encouraged taxpayers to meet obligations on time consistently. Authorities emphasized that non-oil revenue performance remains crucial for sustaining government services and national development initiatives effectively.
KRA Optimistic About Meeting Annual Revenue Target
The overall revenue target for 2025/26 stands at Ksh2.968 trillion, with December performance boosting confidence. Authorities confirmed that lessons from December’s success will guide enforcement, planning, and compliance strategies for the remainder of the year.
Combined efforts from KRA departments, regional offices, and stakeholders sustain high performance across all sectors. Continued monitoring, risk-based audits, and automated reporting will help the Authority achieve its annual revenue target efficiently and effectively.
Exceeding monthly targets builds momentum, reduces fiscal gaps, and improves government budget planning significantly. Officials confirmed that December’s historic performance demonstrates KRA’s operational efficiency, strategic planning, and enforcement capacity nationwide.
Implications for National Development and Policy
KRA’s December performance provides critical funding for infrastructure, social programs, and national development projects. Authorities emphasized that strong compliance and record collections directly improve government capacity to deliver essential services efficiently.
Ongoing monitoring, intelligence gathering, and risk-based audits remain key to sustaining performance throughout the financial year. Officials highlighted that public engagement, taxpayer education, and transparent enforcement encourage compliance and strengthen revenue systems.
Combined departmental efforts, strategic interventions, and technological adoption will continue to drive revenue growth. Authorities noted that meeting the 2025/26 target is achievable, with December performance providing momentum for continued success.
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