Nairobi, Aug. 11 -- The National Treasury has cut its tax revenue target for the current financial year ending June by Sh81.4 billion, signaling weaker-than-expected collections from corporate and workers' earnings.

The Treasury expects the Kenya Revenue Authority (KRA) to net Sh2.777 trillion in taxes during the financial year 2026/27 from the Sh2.859 trillion target set in the Budget Policy Statement released earlier.

The estimates were adjusted after taking into account the fiscal outcome of the financial year 2025/26, the Treasury said in its newly published draft 2026 Budget Review and Outlook Paper.

The biggest blow to revenue is expected from income tax, with the Treasury having lowered expected collections by Sh78.6 billion, fr...