The Kenya Revenue Authority (KRA) has identified four products that contributed to a significant increase in tax collections in October 2026, helping the agency surpass the KSh1 trillion revenue milestone.
The products include keg beer, premium beer, wine and spirits, and tobacco, which recorded significant growth in tax remittances compared to September 2026.
According to figures released by KRA on Thursday, November 5, 2026, premium beer recorded a 43.5 per cent increase in tax remittances, while wine and spirits registered the highest growth at 110.8 per cent.
Tobacco manufacturers recorded a 94.1 per cent increase, while keg beer posted a marginal growth of 0.3 per cent.
KRA attributed the improved performance to increased remittances from manufacturers of the four products, which helped drive domestic excise duty collections up by 54.1 per cent.
The Authority announced that domestic excise duty exceeded its target for the first time in a prolonged period, recording an additional KSh945 million compared to September 2026.
“Domestic Excise Duty surpassed its target for the first time in a long period, posting a surplus of Ksh945 million and growth of 54.1 per cent,” KRA announced.
“The performance was driven by increased remittances from manufacturers of keg beer, premium beer, wines and spirits, and tobacco that recorded respective growths of 0.3 per cent, 43.5 per cent, 110.8 per cent and 94.1 per cent,” it added.
However, not all product categories recorded positive growth during the period. KRA reported that tax remittances from manufacturers of soft drinks declined by 4.8 per cent, while bottled water manufacturers recorded a significant drop of 96.4 per cent.
The Authority attributed the sharp decline in bottled water excise duty collections to changes in government tax policy.
On July 1, 2026, President William Ruto’s administration officially removed excise duty on bottled water through legislation introduced under the Finance Act 2026.
The exemption meant manufacturers of bottled water were no longer required to remit the tax, contributing to the sharp decline recorded in the category.
The October performance comes as KRA reports crossing the KSh1 trillion revenue collection mark, highlighting the contribution of excise duty from alcoholic beverages and tobacco to domestic tax collections.
