The Kenya Revenue Authority (KRA) has surpassed its monthly collection target for the third consecutive month, recording KSh 215 billion in May 2026 against a target of KSh 198 billion. The milestone has been attributed to a crackdown on tax evasion and the rapid adoption of the eTIMS digital invoicing system.
Digital Tax Systems Driving Growth
KRA Commissioner General Humphrey Wattanga credited the eTIMS rollout as a game-changer. “We have onboarded over 180,000 businesses onto the platform this year alone,” he said at a press briefing in Nairobi. “This visibility into transactions is transforming our ability to collect what is owed.”
Impact on the Budget
The surplus collections are expected to give Treasury breathing room ahead of the June budget, potentially reducing the need for additional domestic borrowing. Economists have welcomed the trend but warn that the gains must be sustained.
What It Means for SMEs
Small and medium enterprises have expressed mixed feelings. While the formalisation of the tax base is seen as positive long-term, many SME owners say the compliance costs remain burdensome. The Kenya National Chamber of Commerce is calling for a simplified tax regime for businesses earning under KSh 5 million annually.
Kelele254 
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