KRA's customs revenue collection surpasses Sh980 billion target

KRA's customs revenue collection surpasses Sh980 billion target

KRA Customs

KRA says June 2026 saw a performance rate of 108 percent in custom collections, driven primarily by uptick in road maintenance levy (RML), Value Added Tax on Imports, Import Duty, Import Declaration Fees, Railway Development Levy, and Excise Duty on Imports

Kenya Revenue Authority's (KRA) revenue collection from customs has surpassed its target of KES 980.794 billion, after taxman net KES 988.780 billion during the financial year ended June 30. 

This represents a performance rate of 100.8 percent, highlighting customs' central role in the country's revenue mobilisation push amid rising regional and international trade.

KRA said the record performance represents a 12.4 percent growth over a collection of KES 879.329 billion in the previous financial year, underscoring sustained growth in revenue mobilisation and enhanced border security. 

The milestone caps five consecutive years of sustained growth, during which customs collected more than KES 4.1 trillion in cumulative revenue, the taxman said in a statement on Wednesday.

Taxman noted that FY 2025/26 achievement was driven by enhanced compliance initiatives, increased cargo volumes, technology-driven processes, improved risk management, and stronger collaboration with stakeholders.

“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,” said Dr Lilian Nyawanda, Commissioner, Customs and Border Control. 

During the year under review, customs achieved a historic milestone by collecting KES 89.079 billion in June 2026, the highest monthly customs revenue ever recorded in the history of Kenya. 

The month registered a performance rate of 108 percent, driven primarily by strong collections from the road maintenance levy (RML), Value Added Tax (VAT) on Ordinary Imports, Import Duty on Ordinary Imports, Import Declaration Fees, Railway Development Levy, and Excise Duty on Imports.

Growth in oil and non oil taxes

In another significant achievement, customs exceeded its monthly revenue target in eight out of the 12 months of the 2025/26 Financial Year (July, September, October, December, February, March, May, and June).

The strong performance was driven by sustained growth in both oil and non-oil taxes. Non-oil taxes grew by 14.3 percent, generating KES 618.397 billion, while oil taxes increased by 9.5 perent, with collections of KES 370.383 billion.

KRA has also rolled out the eCustoms Mobile Application to reduce the cost of compliance and make customs and tax services more accessible, convenient, and user-friendly for cross-border traders. 

Additionally, the taxman said introduction of Body-Worn Cameras has enhanced professionalism, transparency, accountability, and service delivery in customs operations. Collectively, these reforms have strengthened trade facilitation while improving operational efficiency.

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