Kenya’s tax revenues grew at the fastest pace in two years last month, even as nationwide protests disrupted economic activity.
Latest Treasury data shows that July collections rose by 7.5 percent to Sh171.5 billion, driven by milder tax measures and ongoing restructuring at the Kenya Revenue Authority (KRA).
The increase came as the country marked the anniversary of last year’s anti-Finance Bill demonstrations. On July 7, Nairobi’s Central Business District was paralyzed as police blocked roads to prevent thousands from gathering for the Saba Saba commemorations. At least 17 counties also reported disruptions, with an average economic contribution of Sh18 billion to the GDP.
Despite the unrest, July’s growth was the strongest since 2023, when receipts jumped by 18.7 percent.
Treasury officials say lessons from last year’s violent protests informed this year’s Finance Bill 2025, which took a softer approach. Revenue expectations were reduced by 91 percent to Sh30 billion in a bid to ease public pressure.
“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,” Treasury Cabinet Secretary John Mbadi said.
He added that the government adopted more openness and public involvement in the 2025 budget process to avoid renewed agitation.
For the fiscal year ending June 30, 2025, KRA collected Sh2.257 trillion, falling short of its revised Sh2.305 trillion target by Sh48 billion. Still, the Authority is targeting Sh2.62 trillion by June 2026, averaging Sh218.3 billion monthly.
To achieve this, KRA is banking on internal reforms, including the adoption of advanced technology, restructuring of departments, and simplified procedures to improve service delivery and revenue efficiency.
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