Nairobi, Aug. 12 -- Tax collections from workers' earnings have surpassed the National Treasury's target for the first time since the 2021/22 financial year, ending three consecutive years of underperformance.

Pay-As- You- Earn (PAYE) receipts rose 7.01 percent to Sh599.8 billion in the year ended June 2026, the Treasury says in a fresh report, exceeding the government's Sh592.1 billion target by Sh7.7 billion.

The performance marks a turnaround after PAYE collections fell short of target by Sh16.2 billion in the 2022/23 financial year, Sh25.8 billion in 2023/24, and Sh6.1 billion in the year ended June 2025.

The latest performance also reflects a shift by the Treasury toward more conservative revenue forecasts after repeated failures ...