The Kenya Revenue Authority (KRA) has listed manufacturing as one of the sectors that generated the most revenue in the 2025/2026 fiscal year, as the taxman recorded its strongest revenue growth.

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According to KRA, other sectors that also contributed the most revenue are energy, financial and insurance, information and communication technology (ICT), and wholesale and retail trade.

The Authority noted that the five aforementioned sectors accounted for about 62 per cent of the total Ksh2.844 trillion collected during the just-ended financial year.

In KRA's annual tax report released on Friday, July 10, the manufacturing sector emerged as the largest contributor , generating Ksh462 billion in tax revenue, representing 16.2 per cent of the total collections.

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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.

"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.

📰 Source: Kenyans.co.ke