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Kenya Domestic Borrowing (in Trillions of Shillings)
Comparison of initial versus revised domestic borrowing targets.
Primary Sources
Kenya Trims Tax Revenue Goal, Ramps Up Borrowing
April 20, 2026, 10:05 AM UTCKenya cut its tax revenue target for the fiscal year through June and increased its borrowing plans, according to Treasury Secretary John Mbadi.The East African nation now expects to collect 2.6 trillion shillings ($20.1 billion), Mbadi said in an official notice, compared with 2.63 trillion shillings in the Treasury’s initial budget plans. In the nine months through March, the East African nation collected 1.7 trillion shillings, equivalent to two-thirds of the revised goal, according to the notice. The Treasury also increased its forecast for net domestic borrowing target to 1.13 trillion shillings, almost double its initial 634 billion ... Learn more about Bloomberg Tax or Log In to keep reading: See Breaking News in Context From research to software to news, find what you need to stay ahead. Already a subscriber? Log in to keep reading or access research tools and resources.
An Overview of Kenya's Tax Expenditures: From "Silent Spending" to ...
Post date: Wed, Apr 15, 2026Category: Tax Expenditures By: Faith Nzomo, Defining Tax Expenditures: The Hidden Budget Tax expenditures often described as silent spending, are the revenues a government chooses to forgo by introducing special provisions in law and are implemented to achieve a certain policy goal. These provisions represent the gap between potential revenue under a baseline tax regime and actual collections after the special rules are applied. While intended as policy instruments for social welfare, they might result in tax base erosion and a reduction in available government resources. Tax expenditures take several forms depending on how they alter the fiscal obligation. They include exemptions, which are total exclusions of certain income or items from the tax base, and allowances, which serve as deductions from the base before the tax rate is applied. Other measures include tax relief, which directly reduces the applicable tax rate, and tax deferrals, which allow for delays in paying a liability until a later date. Finally, tax credits represent specific amounts deducted directly from the final tax liability itself. The preferential tax system provided under a tax expenditure framework is meant to pursue different policy goals such as promoting economic activities, supporting social policies, addressing market failures or attracting investment. While tax ependitures are intended to support the poor or stimulate the industry, they can trigger negative externalities such as exerbating inequality and creating market distortions. For instance, tax expenditures, such as insurance and mortgage reliefs, often benefit middle-to-high-income earners who are more likely to have formal insurance policies or own property. Lower-income individuals may therefore not have access to these tax savings. In addition, tax expenditures are often sold as pro-poor measures with distortion likely to occur when high-income earners or commercial entities captures the benefit intended for the low income households. For example, Kerosene is exempted from tax to help rural households with lighting or cooking, but industrial manufacturers use large quantities of that same untaxed kerosene as a solvent or fuel, hence the expenditure ends up subsidizing profitable firms rather than vulnerable households. Legislative Framework In Kenya, provisions for tax expenditures are outlined in various schedules of existing tax laws which clearly outline the preferential treatment to ...
Kenya Expands Digital Tax Use Ahead of Sh4.7tn Budget - TechTrendsKE
Kenya is moving to deepen the use of digital tax systems as it prepares a Sh4.7 trillion budget for the 2026/27 financial year, with policymakers under pressure to bring more taxpayers into the net. Tax experts say tools like the electronic Tax Invoice Management System, or eTIMS, will be central to improving compliance and reducing reliance on a narrow group of contributors.
Kenya National Financial Inclusion Strategy (2025- 2028) Launched
The National Treasury Cabinet Secretary, Hon. FCPA John Mbadi, EGH, today launched the Kenya National Financial Inclusion Strategy (2025-2028), the Fourth Medium Term Plan (MTP IV) and witnessed the Signing of the Women Entrepreneurs (WE) Finance Code.
