Kenya Revenue Authority Reports Strong FY2025/2026 Revenue Growth Driven by Key Economic Sectors
Nairobi, Kenya – The Kenya Revenue Authority (KRA) has announced a strong revenue performance for the Financial Year 2025/2026, collecting KES 2.844 trillion, representing 10.6% growth compared to the previous financial year. The revenue performance reached 95.8% of the annual target of KES 2.969 trillion, demonstrating continued resilience in Kenya’s economy.
Five Key Sectors Drive Revenue Growth
According to the report, five strategic sectors contributed 62% of total revenue collected, highlighting their critical role in supporting Kenya’s economic growth. These sectors account for approximately 27.4% of the country’s nominal GDP.
Energy Sector Performance
The Energy Sector remained one of the country’s strongest contributors, generating:
- KES 445 Billion in revenue
- 9.1% annual revenue growth
- 15.6% contribution to total revenue
This performance underscores the strategic importance of Kenya’s energy industry in driving national economic development.
Other Leading Contributors
Other major sectors contributing to the impressive revenue performance include:
- Manufacturing Sector – KES 462 Billion collected with 9.2% growth.
- Financial & Insurance Sector – KES 320 Billion collected with 2.9% growth.
- Information, Communication & Technology (ICT) – KES 248 Billion collected with 7.9% growth.
- Wholesale & Retail Trade – KES 288 Billion collected with 10.3% growth.
Customs and Domestic Revenue Performance
KRA also reported significant improvements in customs and domestic revenue collection:
- Customs Revenue: KES 988.757 Billion, achieving 100.8% of the target with 12.4% revenue growth.
- Domestic Revenue: KES 1.851 Trillion, recording 9.6% growth with a 92.9% performance rate.
Technology Driving Better Tax Administration
The report attributes improved revenue collection to continued investment in digital transformation and taxpayer services, including:
- Expansion of eTIMS, onboarding over 750,000 taxpayers.
- Integration of the GAVA Connect API Platform.
- Enhanced iTax and iCMS integration.
- Deployment of AI-powered cargo scanners.
- Introduction of WhatsApp chatbot and USSD services.
- Expansion of the Ushuru Mashinani Programme to strengthen grassroots taxpayer support.
What This Means for the Energy Industry
The Petroleum Institute of East Africa (PIEA) welcomes the continued strong performance of the energy sector, which remains one of Kenya’s leading contributors to national revenue. The results reinforce the importance of sustained investment in petroleum infrastructure, regulatory excellence, innovation, professional capacity building, and collaboration among industry stakeholders.
As the professional body serving the energy sector in East Africa, PIEA remains committed to promoting best practices, supporting industry growth, and fostering a competitive, safe, and sustainable energy ecosystem.
Source: Kenya Revenue Authority (KRA), FY2025/2026 Annual Revenue Performance Report.
