Treasury records Sh3.21 trillion in government receipts in nine months

Government coffers recorded a strong rise in funds received in the first nine months of the 2025/26 financial year, with total inflows into the main revenue account moving past the Sh3 trillion mark as both tax performance and borrowing activity picked up.

Fresh figures from the National Government Budget Implementation Review Report show that the Consolidated Fund had accumulated Sh3.21 trillion by March 31, 2026, equal to 72 percent of the yearly target.

This compares to Sh2.75 trillion collected over the same period in the previous financial year, which had achieved 62 percent of its target.

The Consolidated Fund acts as the central holding account for all State revenue, including tax collections, external financing, grants and earnings from State entities. All government spending is drawn from this account.

Controller of Budget Margaret Nyakang’o noted that the overall increase reflected improved revenue mobilisation and higher reliance on borrowing.

“In the first nine months of the financial year 2025/26, receipts into the Consolidated Fund amounted to Sh3.21 trillion, representing 72 percent of the net annual target, an increase compared to Sh2.75 trillion (62 percent of the annual target) recorded in the first nine months of 2024/25,” the Controller of Budget Margaret Nyakang’o said in the report.

“The receipts comprised balance from the previous financial year (financial year 2024/25), tax and non-tax revenue, domestic borrowing, external loans and grants, and other domestic financing.”

Overall inflows grew by 14 percent compared to the same period a year earlier, with domestic borrowing emerging as the fastest-growing source of funding.

“Receipts into the consolidated fund grew by 14 percent in the first nine months of the financial year 2025/26 compared with the same period in financial year 2024/25. This was attributed to increased domestic borrowing, which grew by 24 percent,” the Controller of Budget added.

Tax collections remained the backbone of State revenue, contributing Sh1.72 trillion, or about 54 percent of total inflows. This also reflected an increase of Sh138.2 billion from the previous year.

Non-tax revenue, however, declined to Sh109.3 billion, representing a 12 percent drop compared to the same period last year.

Domestic borrowing rose sharply to Sh965.9 billion, marking a 24 percent jump, while external loans and grants increased to Sh402.6 billion.

Together, debt-related inflows stood at roughly Sh1.37 trillion during the review period.

Other domestic financing added Sh8.16 billion, while Sh6.4 billion carried over from the previous financial year provided a small opening balance boost.

The Treasury has already projected Sh2.56 trillion under Consolidated Fund Services for recurrent expenditure in the coming financial year. These are statutory payments drawn directly from revenue, covering debt obligations, pensions and salaries of constitutional office holders, including judges.