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KRA Collections Rise 15.5% as Kenya Crosses the KSh1 Trillion Revenue Mark The Kenya Revenue Authority (KRA) has recorded a significant improvement in tax collections, raising KSh260.63 billion in October 2026. This represents a 15.5% increase compared to October 2025. Even more notable is that cumulative collections reached KSh1.010 trillion by the end of October, achieving the trillion-shilling milestone a month earlier than in previous financial years. KRA collected KSh2.327 billion above its October target of KSh258.304 billion, reflecting improved revenue mobilisation across the economy. Domestic revenue contributed KSh165.447 billion, while Customs collections reached KSh94.793 billion, marking the highest monthly Customs revenue in the authority's history. Several factors contributed to the performance, including stronger VAT collections, increased corporation tax payments and higher excise duty remittances. However, the bigger economic question is what these figures mean for ordinary Kenyans and businesses. Higher tax collections can strengthen government financing and reduce pressure on borrowing. But they also need to be considered alongside the cost of living, business operating expenses and the ability of taxpayers to sustain their obligations. KRA is targeting KSh3.268 trillion in revenue for the 2026/2027 financial year. Achieving that target will depend on sustained economic activity, effective tax administration and a growing business sector.

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