- KRA Customs collected a record Ksh 988.8 billion in FY2025/26, beating its target.
- Revenue grew 12.4 per cent as stronger compliance and technology boosted collections.
- KRA is expanding digital customs systems to improve trade and revenue collection.
The Kenya Revenue Authority’s (KRA) Customs and Border Control (C&BC) Department has surpassed its target of Ksh 980.794 billion, collecting Ksh 988.780 billion in the Financial Year 2025/26.
This represents a performance rate of 100.8%, highlighting Customs’ central role in financing Kenya’s development agenda while facilitating legitimate regional and international trade.
The record performance is a 12.4% growth over the Ksh 879.329 billion collected 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 has collected more than Ksh 4.1 trillion in cumulative revenue.
The FY 2025/26 achievement was driven by enhanced compliance initiatives, increased cargo volumes, technology-driven processes, improved risk management, and stronger collaboration with stakeholders.
“This historic performance demonstrates the effectiveness of our customs modernisation programme and our continued commitment to balancing trade facilitation with revenue mobilisation,” said Dr Lilian Nyawanda, Commissioner, Customs and Border Control.
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During the year under review, Customs achieved a historic milestone by collecting Ksh 89.079 billion in June 2026, the highest monthly Customs revenue ever recorded in Kenya’s history.
The month registered a performance rate of 108.0%, 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.
In another significant achievement, Customs exceeded its monthly revenue target in eight 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%, generating Ksh 618.397 billion, while oil taxes increased by 9.5%, with collections of Ksh 370.383 billion.
The Authorised Economic Operator (AEO) programme continued to demonstrate its strategic value in promoting compliant trade. During FY 2025/26, AEO-certified businesses contributed 28% of total Customs taxes.
This performance underscores the importance of trusted trader partnerships in strengthening voluntary compliance while enhancing supply chain efficiency.
As regional and global trade continues to evolve, Customs remains committed to implementing innovative solutions and forging strategic partnerships that promote compliance, enhance service delivery, facilitate legitimate trade, and support sustainable revenue growth for Kenya.
To this end, Customs signed a Memorandum of Understanding (MoU) with the Central Board of Indirect Taxes and Customs (CBIC) of the Republic of India to strengthen cooperation on the exchange of Pre-Arrival Information (PAI) on goods traded between the two countries.
The initiative is expected to expedite cargo clearance, enhance risk management, and improve the security of cross-border supply chains through the real-time electronic exchange of customs data before goods arrive.
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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 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.
KRA is also upgrading the Integrated Customs Management System (iCMS) architecture to improve efficiency, enhance system performance, and deliver better services to traders.
The Authority will adopt the Trade Logistics Information Pipeline (TLIP), a blockchain-enabled digital trade corridor that facilitates a paperless supply chain between Kenya and its trading partners.
The platform connects clearing agents, logistics providers, and government regulatory agencies within a single digital ecosystem, enabling the secure exchange of trade information across borders.
This integration fosters seamless collaboration among stakeholders, improves cargo visibility, reduces paperwork and processing times, and enhances the efficiency, transparency, and security of cross-border trade.
KRA remains committed to modernising customs administration, facilitating legitimate trade, combating illicit trade, and enhancing border security through digital transformation, intelligence-led enforcement, and strategic stakeholder engagement.
By Fredrick Odiero
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