Kenya ranks 10th among African countries in tax and revenue mobilisation, scoring 67.9 out of 100 in 2025, according to preliminary findings from the Mo Ibrahim Foundation's 2026 Ibrahim Index of African Governance (IIAG), reported on October 5.
Kenya improved its score by 4.6 points over the 2016–2025 period. This improvement is significant as it reflects the country's efforts to enhance its governance and tax capacity. The report classifies it as showing "increasing improvement", meaning its progress has accelerated since 2021. It is one of 16 African countries in that category, indicating a positive trend in governance among a select group of nations on the continent.
In the latest rankings, South Africa topped the list with an impressive score of 92.4 points, showcasing its strong governance and tax capacity. Following South Africa, Côte d'Ivoire secured the second position with a score of 83.3, while Namibia came in third with 80 points. Kenya, however, trails behind other notable countries such as Lesotho and Senegal, with Rwanda ranked ninth with 68.6 points. The report highlights that South Africa has held its score around the 90-point mark throughout the decade, which it takes as a sign of strong and mature tax capacity. This consistency underscores the effectiveness of South Africa's governance systems compared to its peers.
The continent as a whole did not fare as well in terms of governance and tax performance. Africa's overall tax and revenue mobilisation performance deteriorated slightly, with the continental average falling 1.5 points over the decade to 50 points in 2025. This decline raises concerns about the ability of many African nations to effectively mobilise resources, which is crucial for sustainable development and economic growth.
The ranking comes at a critical time as the National Treasury tries to raise Kenya's tax-to-GDP ratio from about 13.5 percent to 20 percent under the Medium-Term Revenue Strategy 2024/25–2026/27. This ambitious target is aimed at improving the country's fiscal space and ensuring that the government can fund essential services and infrastructure projects. The Kenya Revenue Authority (KRA) collected Sh2.844 trillion in the financial year ended June 2026, marking a 10.6 percent increase from the previous year. This growth in revenue collection is a positive indicator of the KRA's efforts to enhance tax compliance and broaden the tax base.
The IIAG is published every two years and measures governance performance across Africa. The 2026 edition covers the period from 2016 to 2025, providing a comprehensive overview of the governance landscape on the continent. As countries like Kenya strive to improve their scores, the findings of the IIAG will serve as a crucial benchmark for assessing progress and identifying areas that require further attention.
