
(3 Minutes Read)
For FY 2025-26, Kenya’s total revenue (including Appropriation-in-Aid) is projected at Ksh 3,321.8 billion (17.2% of GDP). This includes Ordinary revenue: Ksh 2,754.7 billion (14.3% of GDP), Appropriation-in-Aid: Ksh 567.0 billion, Grants: Ksh 46.9 billion (0.2% of GDP).
The Kenyan government is eyeing KSh30 billion additional revenue in the next financial year from administrative reforms, which puts it off the path of increasing taxes and adding new ones. These measures led to countrywide protests last year.
For FY 2025-26, Kenya’s total revenue (including Appropriation-in-Aid) is projected at Ksh 3,321.8 billion (17.2% of GDP). This includes Ordinary revenue: Ksh 2,754.7 billion (14.3% of GDP), Appropriation-in-Aid: Ksh 567.0 billion, Grants: Ksh 46.9 billion (0.2% of GDP).
Treasury Cabinet Secretary John Mbadi said that the state is changing tact, choosing to enhance tax revenue collection through administrative reforms by simplifying and streamlining tax laws to make them clearer and easier to implement, thereby improving taxpayer compliance.
The reforms targets reducing tax expenditures, which stood at 3.38% of GDP in 2023, to unlock additional revenue for national development and expanding the tax base and enhancing compliance, in line with the goals set out in the Medium-Term Revenue Strategy.
Focus will also be on streamlining the tax structure to encourage domestic production, attract investment, and stimulate economic activity.
Besides the tax policy measures, the Financial Year 2025-26 KSh 4.24 trillion budgets will also be supported by customs duty measures adopted by East African Community Finance ministers during the region’s pre-budget meeting in May.
Read Also:
https://trendsnafrica.com/kenya-more-taxes-on-cards-for-automobiles-in-2024-25-budget/
The EAC measures are intended to protect industries and ensure they access raw materials and inputs at affordable prices.
The pre-budget meeting allowed Kenya to import tea packaging materials at a lower duty of 10%. In addition, Kenya was granted an extension of duty remission to import wheat at the rate of 10%.