The State collected a total of Ksh3.21 trillion in the first nine months of the 2025/26 financial year, even as domestic borrowing continued to rise sharply, according to the latest budget execution data.

In the report released on Monday, June 22, 2026, the Office of the Controller of Budget said the amount was recorded in the National Government Budget Implementation Review Report (NGBIRR) for the first nine months of FY 2025/26, showing improved revenue performance but increasing reliance on debt financing.

Receipts hit 72pc of annual target

The report shows that total receipts into the Consolidated Fund stood at Ksh3.21 trillion, representing 72 per cent of the annual target, up from Ksh2.75 trillion (62 per cent) recorded in a similar period in FY 2024/25.

According to the Controller of Budget, the inflows were drawn from tax revenue, non-tax revenue, domestic borrowing, external loans and grants, as well as balances from the previous financial year.

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

Domestic borrowing climbs to Ksh965.8 billion

The report shows a notable rise in domestic borrowing, which hit Ksh965.8 billion, representing 88 per cent performance against the annual target, compared to Ksh731.5 billion in the same period last year.

Tax revenue remained the largest contributor at Ksh1.71 trillion, accounting for 54 per cent of total receipts, while grants contributed Ksh402.6 billion, representing 13 per cent.

Non-tax revenue, however, declined slightly to Ksh109.2 billion, down from Ksh122.3 billion in the previous financial year.

Strong revenue growth amid fiscal pressure

Overall receipts rose by 14 per cent year-on-year, reflecting improved collections and increased financing inflows, even as the government continues to grapple with rising expenditure demands.

“The total receipts as of 31st March 2026 amounted to Ksh3.21 trillion, reflecting a 14 per cent increase compared to the same period in FY 2024/25,” the report notes.

Budget financing mix shifts toward debt

The report further indicates that domestic borrowing now accounts for nearly a third of total receipts, underscoring Kenya’s growing reliance on internal debt to plug budget gaps.

External loans and grants, alongside other domestic financing, also contributed to the overall inflows during the review period.

The Controller of Budget report is expected to inform ongoing debates on fiscal sustainability, especially as public debt levels continue to rise alongside expenditure pressures across government sectors.