NAIROBI, Kenya, Aug 25 \u2013 Kenya\u2019s total revenues for the 2024\/25 financial year closed below target, weighed down by underperformance in key tax heads despite stronger receipts from ministerial agencies.<\/b><\/p>\n
Preliminary data from the National Treasury shows total revenues reached Sh2.92 trillion by the end of June 2025, against a target of Sh2.99 trillion \u2014 a shortfall of Sh67 billion.<\/p>\n
The underperformance was mainly due to a Sh76 billion gap in ordinary revenue, which expanded by only 5.7 per cent compared to 12.1 per cent growth the previous year.<\/p>\n
\u201cTotal revenue collection by the end of June 2025 amounted to Sh2.923 trillion against a target of Sh2.986 trillion, representing a shortfall of Sh62 billion on account of a shortfall recorded in ordinary revenue,\u201d Treasury noted in its report on Monday.<\/p>\n
Most tax streams underperformed, with the exception of import duty and VAT, which met or exceeded their targets.<\/p>\n
Import duty rose to Sh157.1 billion registering a 17.3 percent increase while VAT collections stood at Sh660.7 billion, broadly in line with projections.<\/p>\n
Income tax, the single largest revenue source, brought in Sh1.09 trillion, missing its target by Sh32 billion.<\/p>\n
Excise duty was also below expectations at Sh292.6 billion, compared to a target of Sh296.9 billion.<\/p>\n
On the upside, ministerial Appropriation-in-Aid (AIA) receipts outperformed, hitting Sh498.4 billion \u2014 Sh9.1 billion above target \u2014 partly offsetting weak performance in core tax revenues.<\/p>\n
Despite these gains, fiscal pressures persisted. The budget deficit closed at Sh1.01 trillion (5.8 per cent of GDP), nearly in line with the targeted Sh1.012 trillion.<\/p>\n
Financing leaned heavily on the domestic market, with net domestic borrowing at Sh841.2 billion (4.8 per cent of GDP), while external sources contributed Sh178.6 billion (1.0 per cent of GDP).<\/p>\n
Revenue growth slowed markedly, rising just 8 percent year-on-year compared to 14.5 per cent in FY 2023\/24.<\/p>\n
Kenya\u2019s fiscal position remains under close watch by markets and development partners, with the government under pressure to balance fiscal consolidation with funding for critical development priorities.<\/p>\n","protected":false},"excerpt":{"rendered":"
Preliminary data from the National Treasury shows total revenues reached Sh2.92 trillion by the end of June 2025, against a target of Sh2.99 trillion \u2014 a shortfall of Sh67 billion.<\/p>\n","protected":false},"author":14438,"featured_media":107233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,687],"tags":[934,23790,915],"coauthors":[9476],"class_list":["post-107708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-top-stories","tag-featured","tag-revenue-projections","tag-tax"],"yoast_head":"\n