The Kenya Revenue Authority (KRA) has achieved a historic feat, collecting KES 307.6 billion in tax revenue during December 2025. This record-breaking figure exceeded the monthly target by KES 22.5 billion, signaling a major achievement despite prevailing economic challenges.
Customs Leads the Charge
The star performer in this impressive collection was the KRA’s Customs and Border Control department, which generated an all-time high of KES 85.9 billion, surpassing its target of KES 83.0 billion. This marked a 23.5% year-on-year growth, fueled largely by a 24% surge in oil-related taxes. Experts attribute this success to improved efficiency at the ports, tighter controls on illicit trade, and the booming oil sector.
Revenue from oil taxes (VAT, import duties, and levies) achieved a 103.7% performance rate, reflecting the increased volume of imports and higher compliance from petroleum companies.
Domestic and Non-Oil Sectors Shine
Equally notable was the domestic tax collection, which brought in KES 221.3 billion, far surpassing the KES 201.6 billion target. This 31% growth from December 2024 was driven by robust remittances from Pay As You Earn (PAYE) and VAT.
Even more promising was the performance of non-oil import taxes, which saw a 23.4% increase. This was supported by a 14.9% rise in the value of non-oil imports, indicating that the broader economy is showing signs of recovery and growth despite global challenges.
Overall, the KRA’s performance in December 2025 demonstrates the resilience of the Kenyan economy and the effectiveness of its ongoing tax collection measures. The surplus of KES 22.5 billion provides a much-needed cushion for the government as it grapples with debt obligations and the tight fiscal space.
While the government celebrates this fiscal achievement, there is a clear recognition that the public remains burdened by the high cost of living. Analysts suggest that the challenge now is converting these record revenues into tangible improvements in public services and easing the pressure on households and businesses, which continue to bear the brunt of higher taxes.
The digitization of tax collection, including mandatory e-TIMS onboarding for small businesses, has also played a significant role in ensuring better compliance, making tax evasion increasingly difficult. Economic analyst George Owuor commented, “KRA is becoming an inescapable reality for every business, with data matching capabilities closing the loopholes that once existed.”
As Kenya moves into the second half of its fiscal year, the question remains whether the KRA’s record performance can continue to sustain growth while addressing the ongoing economic pressures faced by its citizens.
