Treasury reports fastest tax growth in two years amid July protests
On July 7, Nairobi’s Central Business District was effectively closed as police blocked major roads to prevent thousands of youth from gathering for the Saba Saba commemorations.
Treasury data shows that July tax receipts rose 7.5 per cent to Sh171.5 billion, marking the fastest growth in two years, despite disruptions from protests commemorating the anti-Finance Bill 2024 demonstrations.
The Treasury says that milder tax measures and restructuring of the Kenya Revenue Authority (KRA) will help sustain revenue growth.
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The increase came as the country marked the anniversary of protests triggered by new taxation policies and incidents of police brutality.
On July 7, Nairobi’s Central Business District (CBD) was effectively closed as police blocked major roads to prevent thousands of youth from gathering for the Saba Saba commemorations.
Economic activity was also disrupted in 17 counties, which on average contribute about Sh18 billion to the country’s gross domestic product.
July’s tax growth represents the fastest for the month since 2023, when collections expanded by 18.7 per cent.
The performance was achieved even as the government adopted a cautious approach in the Finance Bill 2025, after deadly street protests led to the withdrawal of more aggressive tax measures that had failed to gain public support.
KRA aims to collect Sh2.62 trillion by June 30, 2026, which translates to an average of Sh218.3 billion per month.
However, collections vary monthly. For the fiscal year ended June 30, 2025, KRA fell Sh48 billion short of its revised target, collecting Sh2.257 trillion against the planned Sh2.305 trillion.
Treasury had already anticipated these shortfalls, citing prolonged unrest and a soft economic environment.
To prevent renewed protests, the government reduced its revenue expectations for the Finance Bill 2025 by 91 per cent, targeting only Sh30 billion. Treasury Cabinet Secretary John Mbadi said lessons from last year shaped this approach.
“Last year’s events were a learning point for us all. Even those who joined the government after that, we had to look at ways of doing things differently,” he said as quoted by the Business Daily.
“One of the concerns of the public agitation is that there was not much involvement, openness, or transparency in the budget process and the generation of the Finance Bill, which this year I can say we have done very differently,” Mbadi added.
KRA is now relying on reforms to sustain and grow revenue. These include simplifying procedures, adopting advanced technology, and restructuring departments to strengthen revenue collection, service delivery and organisational efficiency.
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