Kenya Revenue Authority (KRA) closed December 2025 on a high note, exceeding its monthly revenue target, thanks largely to a surge in fuel-related taxes. The agency collected KSh 307.63 billion, surpassing the target of KSh 284.97 billion, achieving a 108% performance rate and marking a 29.3% increase from December 2024.
Non-oil taxes also contributed significantly to the revenue growth. KRA reported a 103.4% performance rate for non-oil tax collections, reflecting a 23.4% rise compared to the previous year. The increase was partly driven by a 14.9% growth in non-oil import values, signaling robust trade activity in the final month of the year.
Customs and Border Control collections reached KSh 85.93 billion, exceeding the target of KSh 83.01 billion and posting a 23.5% year-on-year growth. The December figure also surpassed the previous monthly record of KSh 85.15 billion achieved in October 2025. Analysts attribute this growth to strong demand for petroleum products and strategic improvements in customs enforcement.
Fuel taxes were the standout performer, growing 23.9% and achieving a 103.7% performance rate. The increase spanned multiple levies, including VAT on oil, import duties, the Railway Development Levy, Petroleum Development Levy, Petroleum Regulatory Levy, and the Road Maintenance Levy Fund. These contributions highlight the central role of energy-related taxation in Kenya’s revenue mix.
Domestic taxes also showed impressive growth, generating KSh 221.29 billion, well above the KSh 201.59 billion target. This translates to a 109.8% performance rate, up 31.7% from KSh 168.06 billion collected in December 2024. With the KRA aiming for KSh 2.97 trillion in total revenue for the 2025/26 financial year, these strong end-of-year figures set a promising tone for the months ahead.
source: kenyawallstreet