Kenya Revenue Authority’s push to boost non-oil revenue has driven its Customs and Border Control Department to a historic monthly collection, giving the taxman a strong start to the 2026-27 financial year.
Customs collected Sh92.53 billion in July, its highest-ever monthly revenue, exceeding the Treasury target by Sh6.37 billion.
The collection was 107.39 per cent of the target of Sh86.16 billion and represented a 15.3 per cent increase from the Sh80.29 billion collected in July 2025.
The biggest boost came from non-oil revenue, which crossed the Sh60 billion mark for the first time in KRA’s history.
Non-oil collections reached Sh61.50 billion in July, making the segment a key driver of the record performance as KRA seeks to strengthen revenue collection beyond traditional sources.
The record follows another strong month in June, when Customs collected Sh89.1 billion, which was then its highest monthly collection.
The back-to-back records point to stronger revenue mobilisation by the department and come as the government faces continued pressure to raise more domestic revenue to finance its spending plans.
KRA attributed the July performance to increased compliance, technology-driven customs administration, improved cargo management and measures to facilitate legitimate trade through the country’s borders and the Port of Mombasa.
The authority has also stepped up the use of data and technology to improve cargo risk management and declaration processing, while strengthening enforcement against illicit trade and revenue leakage.
The reforms are intended to make customs operations more efficient and predictable for businesses while ensuring that taxes and duties due to the government are collected.
“The record collection in July is a significant milestone for KRA and a strong start to the new financial year. It demonstrates that our investments in technology, compliance, trade facilitation and stakeholder collaboration are delivering results,” said the KRA commissioner for customs and border control Lilian Nyawanda.
Nyawanda said KRA would continue making it easier for compliant businesses to trade while tightening measures to ensure all government revenue is collected.
The record non-oil collections are particularly significant as KRA continues to broaden its revenue base through improved compliance and tighter controls.
KRA said its July performance reinforces its role in mobilising funds needed to finance government development priorities while creating a more predictable operating environment for legitimate businesses.
The July results therefore mark a strong opening to the new financial year, with Customs revenue rising for a second consecutive month and non-oil collections emerging as a major contributor to the record performance.
According to data from national treasury, the number of active taxpayers increased by 82,000 to over 6.6 million as of March 2026, up from 6.5 million the previous year, attributing the growth to improved voluntary compliance.
Increasing the tax base has been among the measures KRA is seeking to implement, to boost revenue collection to over Sh4 trillion in the Medium-Term Revenue Strategy (MTRS) to boost the nation’s economic activity.
These efforts include implementing the National Tax Policy and strengthening tax administration for enhanced compliance by expanding the tax base, minimising tax expenditures, and sealing revenue loopholes.
The government approved a Sh4.8 trillion budget for the 2026/27 financial year.
