The National Treasury has released the final exchequer performance figures for the 2024/25 fiscal year, with June 2025 registering strong tax revenue growth and record-high government spending in several key areas.
According to the data, tax revenue collection for June 2025 rose to KSh 246.36 billion, representing a 6.07% year-on-year increase, signalling resilience in revenue mobilisation efforts despite economic pressures. Non-tax revenue, which includes earnings from state-owned enterprises and administrative fees, amounted to KSh 25.92 billion during the same period.
The government also relied heavily on borrowing to bridge fiscal gaps. Domestic borrowing in June stood at KSh 144.67 billion, while external loans and grants brought in KSh 54.91 billion.
Record Monthly Spending in Key Areas
On the expenditure side, June saw the highest monthly recurrent spending in the 2024/25 financial year, reaching KSh 179.58 billion. This category includes wages, pensions, and operations of government ministries and agencies.
Development spending for June was reported at KSh 70.27 billion, reflecting the government’s continued investment in infrastructure, education, healthcare, and other capital-intensive programmes.
Significantly, equitable share disbursements to county governments hit a record KSh 63.93 billion, the highest monthly allocation of the fiscal year, underscoring efforts to ensure timely funding of devolved functions as counties prepare for the next financial cycle.
Mounting Debt Obligations
Public debt servicing remained a major fiscal pressure point. In June alone, the government spent KSh 111.83 billion on repaying domestic and external debt, highlighting the ongoing challenge of balancing development priorities with mounting debt obligations.
Spending under the Consolidated Fund Services (CFS), which includes debt repayments, pensions, and salaries for constitutional office holders, amounted to KSh 153.69 billion in June.
