The Kenya Revenue Authority reported a 15.5 per cent rise in tax receipts for October, with total collections reaching KSh260.63 billion, marginally above the KSh258.304 billion target.

This increase marked the quickest pace in at least two years, outpacing the eight per cent year-on-year growth recorded in October 2025 and the 6.5 per cent rise in October 2024.

Stronger performance in both domestic and customs taxes coincided with an improvement in private-sector conditions, as the Stanbic Bank Kenya Purchasing Managers’ Index climbed to 52.5 in October from 51.3 in September, signalling the strongest monthly improvement this year.

Alex Mwangi, KRA Commissioner for Tax, Research and Analysis, said the authority had amassed KSh1.01 trillion between July and October 2026, reaching the trillion-shilling milestone a month earlier than in earlier financial years. “This achievement reflects a positive trajectory in revenue mobilisation, with the Authority attaining the milestone a month earlier than in previous financial years,” he said.

He added that customs achieved its highest ever monthly revenue, collecting KSh94.793 billion in October 2026. “Customs recorded its highest-ever monthly revenue collection after collecting KSh94.793 billion in October 2026, the highest monthly collection in KRA history.”

The four-month total represents roughly 30.9 per cent of the KRA’s full-year target of KSh3.268 trillion, leaving about KSh2.258 trillion to be collected by June 2027.

Domestic revenue contributed KSh165.447 billion in October, exceeding its target by KSh1.337 billion and rising 18.1 per cent compared with the same month last year.

Corporation tax grew 31.6 per cent to KSh23.932 billion, beating the KSh20.077 billion target, with electricity, manufacturing, transportation and wholesale together accounting for approximately 81 per cent of the total and showing an average instalment tax growth of 38.1 per cent.

Domestic value-added tax increased 22.1 per cent to KSh33.367 billion, surpassing the monthly target by KSh45 million, while the growth rate accelerated to 21.9 per cent in September and October from 12.2 per cent in July and August.

Domestic excise duty rose 54.1 per cent, exceeding its target by KSh945 million, driven by higher remittances from manufacturers of wines and spirits, premium beer and tobacco, which recorded growth of 110.8 per cent, 43.5 per cent and 94.1 per cent respectively.

A Stanbic Bank Kenya PMI survey conducted between 12 and October 28 found that customer demand had strengthened, with new orders expanding at the fastest pace in almost a year and sales volumes rising across agriculture, manufacturing, construction, wholesale, retail, services and mining for the fifth consecutive month.

The survey also noted that business output expanded for the first time since February, led by manufacturing, and that input price inflation reached its highest level since November 2023, mainly due to fuel and transport costs, prompting firms to raise selling prices while cash-flow pressures persisted.