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 that Kenya’s National Treasury missed its revised tax revenue target by almost Sh7 billion in the 2025/26 financial year. Treasury figures cited in the report put tax revenue at Sh2.450 trillion by June 30, 2026, compared with a revised goal of Sh2.457 trillion.

The report also cited earlier Kenya Revenue Authority data showing that the agency collected Sh2.84 trillion in total revenue during the year, up 10.6 percent from Sh2.57 trillion in 2024/25. KRA said five sectors generated about 62 percent of total tax collections: manufacturing, energy, financial and insurance services, information and communication, and wholesale and retail trade. Manufacturing was the biggest contributor, with Sh462 billion, compared with Sh423 billion the previous year.

Treasury data further showed external borrowing at Sh1.297 trillion and domestic borrowing at Sh697.5 billion. The shortfall, though relatively small against the overall target, points to the difficulty Kenya faces in aligning revenue performance with budget plans, especially as the government balances tax collection, borrowing and spending needs.

The figures matter because tax performance is central to financing public services and managing debt. The article does not provide detailed reasons for the missed target or indicate whether the Treasury plans further policy changes in response.