The Kenya Revenue Authority (KRA) has defied economic headwinds to post a record-breaking performance, collecting a staggering KES 307.6 billion in December 2025. This figure not only shatters the monthly target of KES 284.9 billion but also signals a robust 29.3% growth compared to the same period the previous year.

The taxman's aggressive compliance strategies and the widening of the tax base appear to be paying dividends. The surplus of KES 22.5 billion is a welcome relief for the National Treasury, which has been grappling with debt service obligations and a tight fiscal space. "We have started the second half of the Financial Year 2025/26 on a strong note," KRA stated in a press release. "This performance demonstrates the resilience of the Kenyan economy and the efficacy of our new revenue enhancement measures."

Customs Makes History

The star performer of the month was the Customs and Border Control department, which recorded its highest-ever monthly collection in history. Customs raked in KES 85.9 billion, surpassing its target of KES 83.0 billion. This 23.5% growth was driven largely by oil taxes, which surged by nearly 24%. The efficiency at the ports and the crackdown on illicit trade are cited as key drivers for this windfall.

• Oil Taxes: Revenue from oil taxes (VAT, Import Duty, and levies) performed exceptionally well, achieving a performance rate of 103.7%. This reflects both increased importation volumes and higher compliance levels in the petroleum sector.
• Domestic Taxes: The domestic front was equally impressive, contributing KES 221.3 billion against a target of KES 201.6 billion. This represents a 31% jump from December 2024, driven by strong Pay As You Earn (PAYE) and VAT remittances.
• Non-Oil Taxes: Even excluding fuel, the economy showed signs of life. Non-oil import taxes grew by 23.4%, supported by a 14.9% increase in the value of non-oil imports.

The "Hustler" Impact?

Analysts point to the controversial tax measures introduced in the last Finance Act as a contributing factor. While unpopular with the public, the digitization of tax collection—including the mandatory e-TIMS onboarding for small businesses—is making it harder to evade the taxman's net. "KRA is becoming an inescapable reality for every business," notes economic analyst George Owuor. "The data matching capabilities they now have are closing the loopholes."

However, the celebration at Times Tower comes with a caveat. With the cost of living still high, the burden of these record collections is falling heavily on households and businesses. The challenge for the government now remains converting these record revenues into tangible service delivery for the taxpayers who are digging deeper into their pockets than ever before.