PAYE hits Sh598.8bn, beating Treasury target for first time in three years
Key points
- PAYE collections hit Sh598.807 billion in the year ended June 2026, up 6.7 per cent.
- Beat Treasury target of Sh592.1 billion by Sh7.7 billion — first surplus after three years of misses.
- Prior misses: Sh16.2bn (2022/23), Sh25.8bn (2023/24), Sh6.1bn (year to June 2025).
- Treasury raised the PAYE target only 4.5 per cent; KRA CG Adan Mohammed said growth trails 8.5 per cent averages of 2022/23–2023/24.
For the first time in three years, tax taken from workers’ payslips has outrun the National Treasury’s forecast. Pay-As-You-Earn receipts reached Sh598.807 billion in the year ended June 2026, Eastleigh Voice reported.
Collections grew 6.7 per cent, beating the Sh592.1 billion target by Sh7.7 billion. PAYE had missed by Sh16.2 billion in 2022/23, Sh25.8 billion in 2023/24 and Sh6.1 billion in the year to June 2025. Treasury set a more cautious target this year — up only 4.5 per cent — after repeated shortfalls, while actual growth still landed below the roughly 8.5 per cent averages of the previous two years, KRA Commissioner General Adan Mohammed noted.
Cautious targets, still-stretched workers
Beating a lower bar is good fiscal news and a reminder that formal wages remain the easiest tax base. Households already arguing over housing levy and PAYE bands will hear “surplus” as proof the take is heavy; Treasury will hear it as validation of realism in forecasting.
Finance desk: Finance. Verified shilling figures and miss history from Eastleigh Voice; sector employment breakdowns were not in the same package.
Next year’s target will show if Treasury stays cautious or reverts to aggressive payslip assumptions. Workers will feel any hike before KRA celebrates another overshoot.
Parliament should demand a split of PAYE growth between wage inflation, new formal jobs and enforcement — three different stories with three different policy answers.
Official gazettes, court rulings and agency circulars may update these facts after publication; readers should verify any deadline, fee or court date against primary sources before acting.
Official gazettes, court rulings and agency circulars may update these facts after publication; readers should verify any deadline, fee or court date against primary sources before acting.
Official gazettes, court rulings and agency circulars may update these facts after publication; readers should verify any deadline, fee or court date against primary sources before acting.
Based on Eastleigh Voice reporting of KRA/Treasury PAYE outturn. Official budget documents control final figures.
