The Kenya Revenue Authority (KRA) missed its revenue target by Sh90 billion in the first quarter of the 2025/26 financial year, straining Kenya's fiscal operations and widening the deficit. All major tax heads underperformed, indicating structural challenges and the impact of recent policy changes.

• The KRA collected Sh657.17 billion between July and September 2025, against a target of Sh707.03 billion.
• Treasury Principal Secretary Chris Kiptoo attributed the shortfall to compliance gaps, administrative inefficiencies, and revenue-reducing measures from the Finance Act 2025.
• The fiscal deficit for the first quarter rose to Sh280.4 billion, exceeding the targeted Sh189.5 billion, due to the lower-than-expected tax receipts.