The National Treasury of Kenya narrowly missed its revised tax revenue target for the 2025/26 financial year, falling short by nearly Sh7 billion. This indicates ongoing challenges in achieving revenue collection goals.

• The Treasury collected Sh2.450 trillion against a revised target of Sh2.457 trillion.
• Key organizations involved are the National Treasury and the Kenya Revenue Authority (KRA).
• Manufacturing remained the top tax-contributing sector, generating Sh462 billion.

Kenya is considering a Sh27.8 billion biotechnology and pharmaceutical manufacturing park at Konza Technopolis to significantly reduce reliance on imported medicines and active pharmaceutical ingredients (APIs).

• The proposed project, submitted by APIFA Biotech, aims to establish a regional pharmaceutical manufacturing hub.
• A feasibility study is currently underway for the park, which will be developed on 2,000 acres under a Public-Private Partnership (PPP) arrangement.
• The initiative is inspired by India's bulk drug park model, featuring common user facilities to lower production costs for manufacturers and bolster Kenya's pharmaceutical independence, a vulnerability highlighted during the Covid-19 pandemic.

National Treasury Cabinet Secretary John Mbadi has ruled out increasing government borrowing to finance the Sh4.82 trillion budget for the fiscal year 2026/27. This decision comes despite a reduced revenue projection from the Finance Bill 2026.

• The projected additional revenue collection has been scaled down from Sh120 billion to Sh98 billion.
• CS Mbadi stated, "We have not lost much revenue following the amendments to the Finance Bill. No room for enhanced borrowing."
• The government will focus on managing the actual possible loss, estimated to be no more than Sh15 billion, rather than introducing new taxes or reducing expenditure.