Kenya posted a modest rise in revenues in October 2025, supported by higher tax collections and a sharp increase in external financing following the country’s re-entry into international capital markets.
According to the latest fiscal update from the National Treasury, total tax revenue reached Kes 182.62 billion, a 6.71 per cent year-on-year increase, reflecting improved compliance efforts and steady economic activity. Non-tax revenue amounted to Kes 12.47 billion.
The government also leaned heavily on borrowing during the month. External loans and grants surged to Kes 197.67 billion, driven largely by Kenya’s successful issuance of dual-tranche Eurobond notes maturing in 2033 and 2038—the first return to global markets in over a year.
Domestic borrowing stood at Kes 88.10 billion, while other domestic financing contributed Kes 597.21 million.
On the expenditure side, recurrent spending amounted to Kes 119.01 billion, with Kes 54.22 billion directed toward development programmes. Counties received Kes 35.28 billion as their equitable share.
Debt obligations remained a major pressure point. Public debt service hit Kes 196.27 billion, while non-public debt Consolidated Fund Services (CFS) expenditures climbed even higher to Kes 206.64 billion.
The Treasury’s data shows that pension liabilities alone reached Kes 9.77 billion, contributing to the unusual situation where non-public debt CFS outpaced public debt servicing.
Analysts expect that the government may introduce Supplementary Budget I for FY 2025/26 as early as later this month or in December to realign spending with emerging fiscal pressures.
