SHIF, housing levy reforms cut income tax by Sh32bn
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A new report from the National Treasury reveals that the Kenya Revenue Authority (KRA) missed its income tax collection target by Sh32.1 billion in the financial year ending June 2025.
The decision to stop double taxation on housing and social health insurance levies contributed to a shortfall in the collection of income tax by Sh32.1 billion by the Kenya Revenue Authority (KRA) in the financial year ending June.
The National Treasury says in a new report that collection of income tax —which includes pay as you earn (PAYE) paid by regular workers and corporate income tax levied on businesses' profits— fell short of its target of Sh1.125 trillion as KRA collected Sh1.093 trillion in the fiscal year ending June 2025.
