Kenya’s Revenue Collection Rises to 2.8 Trillion Shillings as Manufacturing and Energy Lead Growth

Kenya’s Revenue Collection Rises to 2.8 Trillion Shillings as Manufacturing and Energy Lead Growth

July 13, 2026
By Mintesinot Nigussie

Kenya’s tax revenue collection reached 2.844 trillion shillings in the 2025/26 financial year, driven by strong contributions from manufacturing, energy, financial services, information and communication technology, and wholesale and retail trade sectors, according to the Kenya Revenue Authority (KRA).

The collection represented a 10.6 percent increase from 2.572 trillion shillings recorded in the previous financial year, adding 272.953 billion shillings in additional revenue. The growth exceeded the 6.8 percent expansion registered in FY 2024/25, despite a challenging operating environment, KRA said.

Five sectors accounted for about 62 percent of total revenue collected during the year. The sectors, which represent 27.4 percent of Kenya’s nominal GDP, recorded combined revenue growth of 8 percent.

Manufacturing was the largest contributor among the sectors, generating 462 billion shillings, up from 423 billion shillings in the previous financial year. The sector accounted for 16.2 percent of total KRA collections, with value-added tax (VAT), Pay As You Earn (PAYE), excise duty and corporation tax accounting for 74.6 percent of its revenue.

KRA said raw material imports for manufacturing, including food and beverage inputs and industrial non-food supplies, accounted for 49 percent of total import value during the financial year.

The energy sector contributed 445 billion shillings, recording 9.1 percent revenue growth and accounting for 15.6 percent of total collections. The authority attributed the performance largely to stronger collections from customs taxes on petroleum products.

The financial and insurance sector generated 320 billion shillings, compared with 311 billion shillings in FY 2024/25, contributing 11.3 percent of total revenue. Corporation tax accounted for 34.8 percent of collections in the sector, while withholding income tax and PAYE contributed 47.1 percent.

Revenue from the information and communication technology sector increased by 7.9 percent to 248 billion shillings from 230 billion shillings a year earlier, accounting for 8.7 percent of total collections. Key contributors included excise taxes on airtime and financial services, corporation tax, domestic VAT and PAYE.

Wholesale and retail trade generated 288 billion shillings, representing 10.1 percent of total revenue and a 10.3 percent increase from 261 billion shillings collected in the previous financial year.

Source: FSX Business News