KRA Beats September Target by KSh965 Million as Imports Rise

Customs revenue beats monthly target by KSh965 million, with fertiliser, steel, palm oil and rice among the goods driving cargo growth.

Kenya’s tax authority collected more than KSh90 billion in customs revenue in September, beating its monthly target as the value of imports rose sharply.

The Kenya Revenue Authority (KRA) collected KSh90.053 billion against a target of KSh89.088 billion, exceeding its goal by KSh965 million, according to figures released on Monday, 12 October 2026.

The result represents 101.1 per cent of the target and a 5.8 per cent increase from the KSh85.146 billion collected in September last year.

But the figures also reveal an important distinction: while the total value of imports rose by 25.6 per cent, customs revenue grew at a much slower pace. The difference reflects the fact that customs collections depend not only on the value of goods entering the country, but also on the types of goods imported, applicable taxes and duties, and compliance with customs rules.

For the government, the stronger collection provides additional revenue. For businesses and consumers, the bigger question is how changing import costs and tax obligations affect the price of goods in the Kenyan market.

Fertiliser, steel and rice drive cargo growth

KRA attributed much of the improvement to non-oil customs revenue, which reached KSh57.199 billion against a target of KSh55.422 billion. That was KSh1.778 billion above the department’s projection.

The authority linked the increase to higher imports, with bulk cargo growing by 49.2 per cent. Fertilisers, iron and steel, palm oil and rice were among the commodities contributing to the rise.

Imports of motor vehicles increased by 8.1 per cent, while containerised cargo handled during the month, measured in twenty-foot equivalent units (TEUs), rose by 8.2 per cent.

These figures point to increased activity across several import categories. They do not, however, establish that every sector of the economy expanded at the same pace.

The value of imports can rise because more goods are entering the country, because prices have increased, or because the mix of imported products has changed. The September figures alone do not show how much each factor contributed.

Why the revenue increase matters

Customs duties and taxes on imported goods are an important source of government income. The money helps fund public expenditure alongside other revenue streams, including income tax, value-added tax and excise duty.

Beating the monthly target gives the Treasury more revenue than it had projected from customs operations. But the KSh965 million surplus should not be confused with KRA’s overall revenue performance or the government’s total budget position.

The September results also follow stronger collections earlier in the year. KRA reported that customs revenue reached KSh92.53 billion in July, exceeding the Treasury’s target of KSh86.16 billion by KSh6.37 billion. June collections had reached KSh89.1 billion.

The latest figures suggest that customs revenue has remained above KSh89 billion in each of those three months. However, monthly collections can fluctuate with import demand, commodity prices, shipping schedules and the timing of tax payments.

KRA points to technology and tighter controls

KRA says it is working to improve customs processing while reducing opportunities for tax evasion and illicit trade.

Among the measures is the Advance Cargo Declaration (ACD), alongside greater use of data to assess cargo risks and identify consignments that require closer scrutiny.

The aim is to give customs officials information about shipments earlier, improve the handling of declarations and focus enforcement on cargo that presents a higher risk of non-compliance.

KRA says these changes should help legitimate traders clear goods more efficiently while protecting government revenue.

For importers, however, the effectiveness of the reforms will also be measured by how consistently declarations are processed, how predictable clearance times become and whether businesses face fewer unnecessary delays.

The September revenue figures do not independently establish how much of the increase came from these reforms, as opposed to the rise in import values and changes in the types of goods entering the country.

What it could mean for businesses and consumers

Higher customs collections are not automatically good or bad news for consumers. The effect depends on which goods are being imported, how much tax applies to them and whether businesses pass higher costs on to buyers.

Fertilisers, for example, are important to agriculture, while iron and steel are used in construction and manufacturing. Palm oil and rice are also relevant to food supply chains. Changes in their import prices, taxes and transport costs can influence the costs faced by businesses and households.

The increase in imported goods could also reflect demand for inputs used in production. But without further data on volumes, prices and the final use of the imports, it would be premature to conclude that the September figures signal a broad economic recovery.

KRA has pledged to continue improving compliance, processing efficiency and the predictability of customs operations.

The next test will be whether the authority can sustain revenue collection while making cross-border trade easier for compliant businesses. For the Treasury, that means securing the revenue it expects. For traders, it means clearer rules and fewer delays. And for consumers, the key question remains whether changes in import costs eventually show up in the prices they pay.

About the Author

Maureen Onyango is a journalist passionate about storytelling, life coaching and spiritual lessons. She studied at the Kenya Institute of Management and enjoys telling stories that inform, inspire and empower communities.