What happened

The Kenya Revenue Authority (KRA) announced that customs collections for September rose by 5.8% compared with the same month last year. In its release, KRA said the growth was largely due to increased volumes of certain imported goods, although the agency did not disclose the exact categories. The announcement was published by The Kenya Times on 12 October 2026 and marks the latest monthly uptick in customs revenue after a period of modest growth in the first half of the fiscal year.

Context and background

KRA, the government body responsible for tax administration, regularly publishes monthly customs performance reports. The September figures come after a series of policy adjustments earlier in the year, including the removal of some import duties on raw materials and the tightening of anti‑smuggling measures at key entry points such as Mombasa, Malindi and Lamu. These moves were intended to balance revenue generation with the need to keep essential inputs affordable for manufacturers.

Historically, customs revenue in Kenya has been sensitive to global commodity prices and seasonal trade patterns. For example, the agricultural harvest season typically boosts imports of fertilizer and agro‑chemicals, while the construction boom drives demand for steel, cement and machinery. In the months leading up to September, the country experienced a modest rebound in construction activity, which analysts link to the observed customs growth.

The KRA’s September report also noted that compliance levels improved, with a higher proportion of shipments being cleared through the electronic Single Window system. This digital shift reduces clearance times and helps the authority capture duties more efficiently. While the exact goods that lifted the 5.8% increase were not itemised, the agency’s wording suggests that the rise was not driven by a single commodity but by a basket of imports that together pushed revenue higher.

Compared with what is normal

Customs revenue growth of 5.8% in a single month is above the average monthly increase observed over the past three years, which typically hovers around 2‑4% depending on global trade conditions. To put the figure in perspective:

  • In September 2023, customs collections grew by roughly 3.2% year‑on‑year.
  • During the same month in 2024, the increase was 4.1%, reflecting a modest recovery after the pandemic‑related slowdown.
  • The 5.8% rise in 2026 therefore represents a notable acceleration, indicating stronger import demand or improved revenue capture mechanisms.
Why it matters

For Kenyan SMEs that rely on imported inputs, a higher customs levy can translate into increased landed costs. Companies importing raw materials for manufacturing may see price pressures that affect profit margins, especially if the goods driving the revenue rise are subject to higher duty rates. Conversely, the improved compliance and digital clearance processes can shorten lead times, offering a potential offset for businesses that adopt the electronic Single Window system.

From a macro‑economic viewpoint, stronger customs collections bolster the government’s fiscal position, providing additional resources for infrastructure projects, health spending and debt servicing. However, sustained revenue growth depends on maintaining a balance between duty rates and the competitiveness of Kenyan products in regional markets. If duties become too burdensome, importers might seek alternative sourcing routes, potentially eroding the revenue base.

Practical steps
  • Review your import cost structure: verify duty rates on the goods you bring in and assess whether any recent changes affect your pricing.
  • Adopt the KRA’s electronic Single Window system if you haven’t already; it can reduce clearance delays and help you stay compliant.
  • Engage with a tax advisor to explore possible exemptions or reduced rates for inputs that qualify under existing incentive schemes.
  • Monitor monthly KRA customs reports to track trends and anticipate any further shifts in duty collections.

Tax Planning & Compliance services at Beavoren Ventures can help your business navigate the evolving customs landscape, ensuring you optimise duty payments while remaining fully compliant with KRA regulations.

Talk to our team at Beavoren Ventures - info@beavorenventures.co.ke - to set up your systems correctly.

Disclaimer: This article is informational and does not constitute formal tax, audit or legal advice. For guidance specific to your circumstances, please contact Beavoren Ventures.