The National Treasury revealed that Kenya's tax revenue for the 2025/26 financial year fell short of targets, collecting KSh 2.45 trillion against an estimated KSh 2.63 trillion.Public debt servicing consumed KSh 1.83 trillion of the KSh 4.17 trillion total expenditure, highlighting the government's reliance on borrowing.Non-tax revenue also missed revised estimates, forcing the government to rely on domestic and external loans.Key allocations included pensions, defense, and education, while development spending focused on infrastructure and planning.

The shortfall raises concerns about the Kenya Revenue Authority's capacity to meet targets, with debt obligations crowding out spending on healthcare and education.The Treasury's revised revenue targets were not met, underscoring challenges in fiscal management.