The Kenya Revenue Authority (KRA) has reported stronger customs revenue collections for September 2026, raising Sh90.053 billion and surpassing the National Treasury's monthly target by Sh965 million.

In a statement released on Monday, October 12, the tax authority said its Customs and Border Control Department achieved 101.1 per cent of its revenue target, reflecting increased international trade activity and ongoing efforts to strengthen customs administration.

The Treasury had set a collection target of Sh89.088 billion for September, but the department exceeded that figure as the value of imported goods and cargo volumes increased during the month.

The performance also represented a 5.8 per cent improvement compared with September 2025, when customs revenue stood at Sh85.146 billion. The year-on-year growth indicates an increase in revenue generated from cross-border trade, an important source of government financing.

According to KRA, one of the principal drivers of the improved performance was a 25.6 per cent increase in the overall value of imports. The growth was particularly evident in non-oil imports, which contributed to stronger customs collections.

Bulk cargo recorded an even sharper increase of 49.2 per cent, suggesting significantly higher activity in the movement of large consignments through Kenya's trade infrastructure.

The authority also reported an 8.1 per cent increase in imported motor vehicles, while containerised cargo volumes measured in twenty-foot equivalent units rose by 8.2 per cent.

These developments contributed to stronger revenue performance by increasing the volume and value of goods subject to applicable customs duties and other import-related taxes.

Customs revenue plays a significant role in Kenya's public finances because it generates income from international trade while supporting the enforcement of import regulations.

However, higher customs collections do not necessarily indicate that every sector of the economy is experiencing stronger growth. Revenue performance can also be influenced by changes in import prices, the composition of imported goods, exchange rates and tax compliance.

KRA attributed part of the improvement to reforms aimed at making customs administration more efficient while strengthening enforcement against illicit trade and revenue leakage.

Among the measures being implemented is the Advanced Cargo Declaration system, which is intended to improve the availability of shipment information before goods arrive at designated entry points.

The authority has also expanded the use of data-driven risk management to identify potentially high-risk consignments and support more targeted customs inspections.

These measures are designed to improve the processing of legitimate shipments while allowing customs officers to concentrate enforcement resources on transactions that present greater compliance risks.

For importers and logistics companies, efficient customs procedures are important because delays at ports and border crossings can increase operational costs and disrupt supply chains.

KRA says its ongoing reforms are intended to make customs processes more transparent, predictable and efficient, while ensuring that businesses comply with applicable tax and trade requirements.

The September performance follows another strong collection period earlier in the financial year. In July 2026, customs revenue exceeded the Treasury's target of Sh86.16 billion by approximately Sh6.37 billion.

Before that, the department had collected Sh89.1 billion in June 2026, which was described at the time as its highest monthly customs revenue performance.

The latest figures therefore suggest that customs collections have remained an important contributor to the government's revenue mobilisation efforts during the 2026/27 financial year.

Kenya continues to face pressure to raise sufficient domestic revenue to finance public services, infrastructure development and other government obligations while managing its borrowing requirements.

Improving tax collection is consequently an important component of the country's fiscal strategy, particularly as policymakers seek to strengthen public finances without relying excessively on additional debt.

Nevertheless, the sustainability of stronger customs revenue will depend partly on the performance of international trade, the stability of import demand and the effectiveness of measures intended to improve compliance.

KRA has indicated that it will continue investing in technology-driven customs administration and strengthening enforcement against illicit trade.

The authority also intends to improve cargo processing and reduce unnecessary administrative barriers for businesses that comply with customs requirements.

For traders, the success of these reforms will be measured not only by the amount of revenue collected but also by whether customs procedures become faster, more predictable and less costly.

With September collections reaching Sh90.053 billion, KRA has recorded another month of above-target customs revenue. The performance provides additional support for government financing, although maintaining the momentum will require continued improvements in trade facilitation, compliance and administrative efficiency.