The Kenya Revenue Authority (KRA) is banking on stepped-up deployment of technology and enforcement tools to raise Sh932 billion in the final three months of the current financial year in a bid to meet its Sh2.97 trillion annual revenue target.
The aggressive final-quarter push comes after the agency collected Sh2.038 trillion by the end of March—the first time it has crossed the Sh2 trillion mark within nine months.
The receipts were Sh209 billion, or 11.43 percent, more than the Sh1.83 trillion haul in a similar period the year before.
The revenue, however, fell short of the Sh2.122 trillion target, leaving a gap and piling pressure on KRA to accelerate collections.
The tax authority has signalled a shift toward intensified compliance measures in the final quarter, which traditionally delivers the strongest quarterly inflows because it coincides with final instalment payments for corporate income tax, particularly from large firms such as banks, ahead of the annual tax filing deadline.
“KRA remains firmly focused on intensifying compliance interventions, sustaining growth momentum, and closing the remaining gap toward the annual target of Sh2.97 trillion, safeguarding gains already achieved while accelerating targeted interventions necessary to deliver the full-year revenue objective,” Commissioner-General Humphrey Wattanga said.
KRA is relying on digital tools designed to tighten tax compliance and plug revenue leakages across the economy.
The authority has introduced a WhatsApp-based filing service powered by an artificial intelligence chatbot known as “Shuru,” alongside USSD services targeting taxpayers without smartphones in a bid to widen the tax base. The tools are aimed at drawing more informal sector players into the tax net.
It has also deployed the Electronic Tax Invoice Management System (eTIMS) to enhance real-time monitoring of transactions, particularly in value-added tax, where fraud and underreporting have historically eroded collections.
KRA has further embedded its systems directly into business operations through GavaConnect, an enterprise platform that allows firms, fintechs, and software developers to integrate tax services into their platforms. The move is expected to automate compliance and reduce opportunities for tax evasion.
The technology-driven approach is complemented by heightened enforcement measures, including the deployment of body-worn cameras for customs officers at border points and airports to curb leakages and improve transparency.
Customs collections have emerged as a key support pillar in the revenue drive, rising 13.3 percent to Sh733.7 billion and surpassing targets by 0.9 percent in the nine months to March. The gains were driven by increased imports of commodities such as vehicles, machinery, cereals, and industrial inputs.
Non-oil revenues, in particular, posted strong growth of 16.9 percent and exceeded the target by Sh3.56 billion, reflecting improved compliance and higher import volumes.
Domestic taxes, such as deductions from earnings by workers and companies—the largest contributor to revenue—grew at a slower pace of 10.4 percent to Sh1.301 trillion, highlighting the persistent weakness in domestic economic activity.
The heavy lifting required in the final quarter raises questions about the sustainability of the revenue push against a backdrop of subdued consumer demand, constrained household incomes, and high business costs.
“Revenue performance [for the period ending March] was delivered within a still-constrained macroeconomic environment marked by subdued household purchasing power, soft consumer demand, elevated business costs, and continued global trade uncertainty,” Mr Wattanga said.
