NAIROBI, Kenya, July 21 – The National Treasury fell short of its revised tax revenue target by nearly Sh7 billion in the 2025/26 financial year, underscoring the challenges of meeting revenue collection goals.
Treasury data shows tax revenue stood at Sh2.450 trillion as of June 30, 2026, against a revised target of Sh2.457 trillion.
Earlier, data from the Kenya Revenue Authority (KRA) showed that the taxman collected Sh2.84 trillion in total revenue during the financial year, a 10.6 percent increase from Sh2.57 trillion collected in 2024/25.
According to KRA, five sectors accounted for about 62 percent of the total tax collected: manufacturing, energy, financial and insurance services, information and communication, and wholesale and retail trade.
Manufacturing remained the largest contributor, generating Sh462 billion, up from Sh423 billion in the previous financial year.
Treasury data also shows external borrowing stood at Sh1.297 trillion, while domestic borrowing amounted to Sh697.5 billion.
