The National Treasury reported that tax revenue collected in September reached KSh258.31 billion, a 14.85 percent increase from the same month a year earlier.

For the three months to September, ordinary revenue – comprising tax and non‑tax receipts – rose 14.4 percent to KSh655.8 billion, up from KSh573.5 billion in the comparable period last year.

Despite the growth, the Kenya Revenue Authority recorded a shortfall of KSh58.2 billion against its ordinary‑revenue target for the first quarter, underscoring the difficulty of meeting the national budget.

Income tax contributed the largest gap, with collections of KSh297.9 billion falling short of the KSh323.3 billion target, while excise duty receipts were KSh16.3 billion below expectations.

Import duty was the only major tax category to exceed its collection target, partially offsetting the shortfalls in other streams.

Domestic borrowing for the period amounted to KSh101.72 billion, complemented by external loans and grants of KSh54.05 billion, highlighting the government's reliance on financing beyond tax receipts.

Non‑tax revenue contributed KSh13.95 billion, with other domestic financing adding KSh364.39 million, while public debt service consumed KSh109.66 billion during the same timeframe.

The Treasury’s annual tax revenue target for FY 2026/27 stands at approximately KSh2.86 trillion, but revised projections reflect slower economic growth and the need to close the gap between actual receipts and budgeted expectations.