KRA collected Ksh1.010 trillion by October 2026, reaching the milestone a month earlier than in previous financial years.
KRA tax revenue reached Ksh1.010 trillion by the end of October 2026, the Kenya Revenue Authority announced. Higher remittances from alcohol and tobacco manufacturers helped strengthen domestic excise duty collections.
In its November 5 statement, the authority said it crossed the trillion-shilling threshold a month earlier than in previous financial years. It described the achievement as a sign of improving revenue collection.
Alcohol and tobacco lift KRA tax revenue
KRA identified keg beer, premium beer, wines and spirits, and tobacco as key drivers of October’s excise performance. Manufacturers in all four categories increased their remittances compared with September, although the gains varied sharply.
Wines and spirits recorded the strongest growth at 110.8 per cent, followed by tobacco at 94.1 per cent. Meanwhile, premium beer remittances rose by 43.5 per cent, while keg beer registered a modest 0.3 per cent increase.
As a result, domestic excise duty exceeded its collection target for the first time in a long period. KRA reported a Ksh945 million surplus against the target and growth of 54.1 per cent.
Bottled water remittances fall after tax change
However, soft drinks and bottled water manufacturers recorded lower remittances during the same period. Soft drink remittances fell by 4.8 per cent, while bottled water recorded a much steeper decline of 96.4 per cent.
KRA attributed the bottled water decline mainly to government policy changes. President William Ruto’s administration announced the removal of excise duty on bottled water on July 1, 2026, under the Finance Act 2026.
The authority also highlighted four sectors that accounted for about 80 per cent of October’s corporation tax collections. These were wholesale business, manufacturing, transportation and electricity, which together supplied the largest share of revenue under that tax category.
