REVEALED: Kenya’s Highest Tax-Paying Sectors As Revenue Hits Ksh2.8 Trillion
The Kenya Revenue Authority (KRA) has identified manufacturing as one of the industries that earned the most revenue in the fiscal year 2025/2026, with the taxman experiencing the greatest revenue growth.
According to KRA, additional revenue-generating industries include energy, finance and insurance, information and communication technology (ICT), and wholesale and retail commerce.
The Authority stated that the five aforementioned sectors accounted for approximately 62% of the total Ksh2.844 trillion collected during the just-ended fiscal year.
According to KRA’s annual tax report, which was released on Friday, July 10, the manufacturing sector was the greatest contributor.
The sector accounted for Ksh462 billion in tax revenue, or 16.2 per cent of overall collections.
๐๐๐ฒ ๐๐๐๐ญ๐จ๐ซ๐ฌ ๐๐ฎ๐ฌ๐ก ๐๐๐ฏ๐๐ง๐ฎ๐ ๐๐จ๐ฅ๐ฅ๐๐๐ญ๐ข๐จ๐ง ๐ญ๐จ ๐๐๐ ๐.๐ ๐๐ซ๐ข๐ฅ๐ฅ๐ข๐จ๐ง ๐งต
KRA Records ๐๐๐ ๐.๐๐๐ ๐ญ๐ซ๐ข๐ฅ๐ฅ๐ข๐จ๐ง in Revenue Collection for the ๐ ๐ข๐ง๐๐ง๐๐ข๐๐ฅ ๐๐๐๐ซ ๐๐๐๐/๐๐๐๐ representing a robust double-digit growth ofโฆ pic.twitter.com/v0KvHmbVKZโ Kenya Revenue Authority (@KRACorporate) July 10, 2026
KRA attributed the strong performance to Value Added Tax (VAT), Pay As You Earn (PAYE), excise duty and corporation tax, which accounted for nearly three-quarters of the sector’s tax payments.
The energy sector ranked second after contributing Ksh445 billion, accounting for 15.6 per cent of the total revenue collected, with KRA saying the growth was largely driven by improved performance in customs and oil taxes.
On the other hand, the financial and insurance and retail trade sectors came third and fourth respectively, contributing Ksh320 billion and Ksh288 billion.
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“The strong performance underscores sustained growth in domestic revenue mobilisation despite a challenging operating environment,” the Authority disclosed.
The Authority attributed part of the improved revenue performance to increased adoption of technology in tax administration, including expansion of the Electronic Tax Invoice Management System (eTIMS).
Other measures that helped boost revenue collection included integrating major tax platforms, introducing pre-populated tax returns and deploying artificial intelligence-powered analytics to improve compliance.
“KRA continues to leverage modern technology to enhance efficiency, transparency and effectiveness in revenue collection,” the taxman stated.
As part of broader reforms, KRA also expanded grassroots taxpayer services and strengthened debt collection programmes that recovered about Ksh144.824 billion.
REVEALED: Kenya’s Highest Tax-Paying Sectors As Revenue Hits Ksh2.8 Trillion
