Kenya: Treasury Misses Tax Revenue Target By Nearly Sh7bn

What the report says

AllAfrica, carrying a Capital FM report from Nairobi by Kevin Rotich, reported on July 21, 2026, that Kenya’s National Treasury missed its revised tax revenue target for the 2025/26 financial year by nearly Sh7 billion. Treasury data cited in the report showed tax revenue at Sh2.450 trillion as of June 30, 2026, compared with a revised target of Sh2.457 trillion.

The report also cited earlier Kenya Revenue Authority figures indicating that total revenue collection reached Sh2.84 trillion in 2025/26, up 10.6 percent from Sh2.57 trillion in the previous financial year. KRA said five sectors contributed about 62 percent of total tax collected: manufacturing, energy, financial and insurance services, information and communication, and wholesale and retail trade. Manufacturing was the largest source, contributing Sh462 billion, compared with Sh423 billion a year earlier.

Capital FM further reported that Treasury data showed external borrowing at Sh1.297 trillion and domestic borrowing at Sh697.5 billion. The shortfall, while small relative to the overall tax target, points to the continued difficulty of forecasting and achieving revenue goals in a budget environment where borrowing and tax collection remain closely watched.

For context, Kenya’s fiscal position is often assessed through the balance between revenue performance, spending commitments and debt financing needs. The figures reported by Capital FM suggest revenue grew year on year, but still narrowly missed the revised Treasury goal, a development likely to be relevant for budget execution and future revenue planning.