The government has injected an additional Sh17.6 billion into the Kenya Revenue Authority (KRA) in a renewed push to accelerate tax collection and ease pressure on public borrowing, as the fiscal year enters its final stretch.
The fresh allocation, approved under Supplementary Estimates I for the 2025/2026 budget and sanctioned by President William Ruto, comes at a critical moment when the tax authority is racing to meet an ambitious Sh2.97 trillion annual revenue target.
KRA is expected to mobilise roughly Sh900 billion by June to stay on track an uphill task despite steady gains recorded so far.
Latest Treasury data shows that in the nine months to March, KRA collected Sh2.04 trillion in revenue, reflecting an 11.4 percent increase compared to Sh1.829 trillion posted over a similar period last financial year. The growth underscores improved compliance and expanded tax measures, even as economic pressures persist.
Domestic taxes continued to anchor collections, bringing in Sh1.3 trillion between July 2025 and March 2026—up 10.4 percent year-on-year. Meanwhile, customs and border control revenues recorded stronger momentum, rising 13.3 percent to Sh733.7 billion, pointing to increased trade volumes and enhanced enforcement at entry points.
The additional funding forms part of a broader expansion in government spending, with total expenditure under the supplementary budget rising by Sh393.2 billion to Sh4.695 trillion.
Several sectors received notable allocations. The Teachers Service Commission has been allocated Sh24.2 billion to address salary shortfalls and health insurance obligations, while Sh6 billion will support operations at Moi University and Kabarnet University.
In the health sector, the government has set aside Sh4 billion to clear pending bills linked to the defunct National Hospital Insurance Fund (NHIF), alongside Sh675 million earmarked for the upgrade of Level 4 hospitals.
A State House statement indicated that the security sector remains the largest beneficiary of the additional spending, receiving Sh60 billion, while Sh25 billion has been directed to the Affordable Housing Programme under the Bottom-Up Economic Transformation Agenda.
The increased allocation to KRA signals the administration’s continued reliance on enhanced domestic revenue mobilisation to fund its growing expenditure needs and contain debt levels, even as taxpayers brace for sustained enforcement and compliance measures in the final quarter of the fiscal year.
The fresh allocation, approved under Supplementary Estimates I for the 2025/2026 budget and sanctioned by President William Ruto, comes at a critical moment when the tax authority is racing to meet an ambitious Sh2.97 trillion annual revenue target.
KRA is expected to mobilise roughly Sh900 billion by June to stay on track an uphill task despite steady gains recorded so far.
Latest Treasury data shows that in the nine months to March, KRA collected Sh2.04 trillion in revenue, reflecting an 11.4 percent increase compared to Sh1.829 trillion posted over a similar period last financial year. The growth underscores improved compliance and expanded tax measures, even as economic pressures persist.
Domestic taxes continued to anchor collections, bringing in Sh1.3 trillion between July 2025 and March 2026—up 10.4 percent year-on-year. Meanwhile, customs and border control revenues recorded stronger momentum, rising 13.3 percent to Sh733.7 billion, pointing to increased trade volumes and enhanced enforcement at entry points.
The additional funding forms part of a broader expansion in government spending, with total expenditure under the supplementary budget rising by Sh393.2 billion to Sh4.695 trillion.
Several sectors received notable allocations. The Teachers Service Commission has been allocated Sh24.2 billion to address salary shortfalls and health insurance obligations, while Sh6 billion will support operations at Moi University and Kabarnet University.
In the health sector, the government has set aside Sh4 billion to clear pending bills linked to the defunct National Hospital Insurance Fund (NHIF), alongside Sh675 million earmarked for the upgrade of Level 4 hospitals.
A State House statement indicated that the security sector remains the largest beneficiary of the additional spending, receiving Sh60 billion, while Sh25 billion has been directed to the Affordable Housing Programme under the Bottom-Up Economic Transformation Agenda.
The increased allocation to KRA signals the administration’s continued reliance on enhanced domestic revenue mobilisation to fund its growing expenditure needs and contain debt levels, even as taxpayers brace for sustained enforcement and compliance measures in the final quarter of the fiscal year.
