The Kenya Revenue Authority (KRA) reported that excise duty from alcoholic drinks and tobacco was the main catalyst for its strong tax performance in October 2026, enabling the authority to exceed the Ksh1 trillion revenue milestone.

KRA said manufacturers of keg beer, premium beer, wine, spirits and tobacco posted month‑on‑month growth rates of 0.3%, 43.5%, 110.8% and 94.1% respectively, contributing to a 54.1% increase in domestic excise duty.

The rise in excise duty translated into an additional Ksh945 million compared with September 2026, marking the first time the domestic excise target was surpassed in a long period.

While alcohol and tobacco boosted revenue, KRA noted that remittances from soft‑drink and bottled‑water manufacturers fell by 4.8% and 96.4% respectively, reflecting recent policy changes.

The decline in bottled‑water excise is linked to the removal of the duty on bottled water, a measure announced by President William Ruto’s administration on 1 July 2026 under the Finance Act 2026.

In addition to excise, KRA identified four sectors—wholesale, manufacturing, transportation and electricity—that together accounted for about 80% of corporation‑tax collections in October 2026.

Overall, KRA announced total tax collection of Ksh1.010 trillion for October 2026, a full trillion reached a month earlier than in previous fiscal years.

KRA described the achievement as evidence of a positive trajectory in revenue mobilisation, noting that the milestone was attained ahead of schedule.