Nairobi — The Government has allocated an additional Sh17.6 billion to the Kenya Revenue Authority (KRA) to boost tax collection and reduce reliance on public borrowing.

The funding is part of the Supplementary Estimates I for the 2025/2026 financial year, approved by William Ruto.

The allocation comes as KRA targets to raise about Sh900 billion by June 2026 to meet its annual revenue goal of Sh2.97 trillion.

Keep up with the latest headlines on WhatsApp | LinkedIn

In the nine months to March, the taxman collected Sh2.04 trillion, marking an 11.4 percent increase from Sh1.829 trillion recorded in a similar period last financial year.

Domestic taxes remained the largest contributor, generating Sh1.3 trillion between July 2025 and March 2026, a 10.4 percent year-on-year growth.

Meanwhile, customs and border control collections rose to Sh733.7 billion from Sh647.6 billion, representing a 13.3 percent increase.

The supplementary budget raised total government expenditure by Sh393.2 billion to Sh4.695 trillion, up from Sh4.3 trillion.

Key allocations include Sh24.2 billion to the Teachers Service Commission for salary shortfalls and health insurance, and Sh6 billion for Moi University and Kabarnet University.

The government also set aside Sh4 billion to settle pending bills of the defunct National Hospital Insurance Fund (NHIF), and Sh675 million for upgrading Level 4 hospitals.

"The security sector remains the biggest beneficiary of additional allocations of Sh60 billion," a State House statement said.

An additional Sh25 billion has been earmarked for the Affordable Housing Programme under the government's Bottom-Up Economic Transformation Agenda (BETA).