Government inflows into the Consolidated Fund, the main account that receives all public revenues, exceeded Sh3 trillion during the first nine months of the 2025/26 financial year, buoyed by improved tax collection and increased domestic borrowing.
According to the National Government Budget Implementation Review Report, total receipts reached Sh3.21 trillion by March 31, 2026, representing 72 per cent of the annual target. This marks a significant increase from the Sh2.75 trillion recorded during the same period in the previous financial year.
The Consolidated Fund serves as the government’s central treasury account, receiving revenues from taxes, non-tax sources, external financing, grants and surpluses from state corporations.
In her report, the Controller of Budget, Margaret Nyakang’o, noted that the funds comprised carry-over balances from the previous financial year, tax and non-tax revenues, domestic borrowing, foreign loans and grants, as well as other domestic financing sources.
The report indicates that receipts into the fund rose by approximately 14 per cent compared to the corresponding period in 2024/25, largely due to a substantial increase in domestic borrowing, which expanded by 24 per cent year-on-year.
Tax revenue remained the largest source of government income, contributing Sh1.72 trillion, equivalent to 54 per cent of total receipts. This represented an increase of Sh138.2 billion compared to the previous year. In contrast, non-tax revenue declined by 12 per cent to Sh109.3 billion.
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Domestic borrowing generated Sh965.9 billion during the period under review, while external loans and grants amounted to Sh402.6 billion. Combined, debt-related financing contributed roughly Sh1.37 trillion to government coffers.
Additional domestic financing sources added Sh8.16 billion, while the opening balance carried forward from the 2024/25 financial year contributed Sh6.4 billion.
Funds deposited into the Consolidated Fund are used to finance government operations and expenditure. Looking ahead, the Treasury has allocated Sh2.56 trillion for Consolidated Fund Services expenditure in the next financial year.
These expenditures are statutory obligations that are paid directly from government revenues without requiring parliamentary approval. They primarily cover public debt servicing, pension payments and remuneration for holders of constitutional offices, including members of the judiciary.
