Nairobi, May 28 -- The Kenya Revenue Authority (KRA) collections have deteriorated following wider missed targets amid pressure to cut taxes on key income heads like pay-as-you-earn (PAYE), which could worsen revenue performance.

Ordinary revenues collected through nine months of the fiscal year to March 2026 missed the mark by Sh161.9 billion, extending the deficit in tax collection from Sh110.6 billion at the end of December 2025.

The missed revenue targets come amid the government's grant of tax concessions to contain the vagaries of the US-Israel war on Iran, including the halving of value-added tax (VAT) on petroleum products.

The National Treasury still faces public pressure to offer further tax incentives, including reducing pay...