Value Added Tax (VAT) remains Kenya’s second-largest tax head after income taxes, generating Sh722.4 billion for the exchequer, according to Treasury data.
VAT collections from both domestic transactions and imports recorded sustained growth between the 2022/23 and 2025/26 financial years.
Domestic VAT collections rose steadily from Sh272.73 billion in 2022/23 to Sh313.37 billion in 2023/24, before increasing to Sh327.66 billion in 2024/25 and reaching Sh356.88 billion in 2025/26.
Import VAT followed a similar upward trend, climbing from Sh277.71 billion in 2022/23 to Sh332.12 billion in 2023/24.
Collections edged up to Sh333.07 billion in 2024/25 before surging to Sh365.56 billion in 2025/26.
The combined growth in domestic and import VAT collections underscores the tax’s growing contribution to government revenue, supported by economic activity and improved tax administration and compliance.
