Kenya's fiscal stability faces fresh challenges after the Kenya Revenue Authority (KRA) fell Sh47.3 billion short of its tax collection target for the fiscal year ending June 30, 2025. The shortfall, revealed in new National Treasury documents published in the Kenya Gazette, comes despite aggressive collection efforts by the taxman and threatens to derail President William Ruto's economic reform agenda.
Official figures show the KRA collected Sh2.257 trillion in tax revenue against a revised target of Sh2.305 trillion.
The Treasury initially hoped that KRA would collect Sh2.745 trillion but revised this downwards.
This marks the third consecutive year of revenue underperformance, exacerbating pressure on a government already grappling with a public debt reaching a record Sh11.51 trillion by May 2025.
