Tax collections in July rose sharply despite disruptions linked to nationwide protests, new Treasury data shows.

Receipts grew by 7.5 percent to Sh171.5 billion, compared to Sh159.5 billion a year earlier when growth stood at only 2.8 percent.

The increase came even as the country marked the anniversary of the deadly anti-Finance Bill 2024 demonstrations.

The protests, fuelled by anger over police brutality and taxation policies, disrupted businesses across 17 counties and paralysed the capital on July 7 during Saba Saba commemorations. Nairobi’s Central Business District was locked down as police barricaded roads to block protesters from assembling.

Despite the unrest, July’s collections registered the fastest growth in two years since 2023, when receipts for the month expanded by 18.7 percent.

The performance was achieved against the backdrop of modest new taxes under the Finance Bill 2025, after the government abandoned more aggressive measures following last year’s violent street protests.

The Kenya Revenue Authority (KRA) is targeting Sh2.62 trillion in tax receipts by June 30, 2026, which translates to monthly average collections of Sh218.3 billion.

However, receipts often vary from month to month. For the fiscal year ended June 30, 2025, the taxman fell short of its revised target by Sh48 billion, raising Sh2.257 trillion against Sh2.305 trillion.

Treasury had already pointed to missed targets, blaming prolonged protests that began in June 2024 and a weak economic environment. “The revenue shortfalls have resulted from several factors.

One is the social unrest that was witnessed between June and August, and which affected businesses,” National Treasury Director for Budget Albert Mwenda said earlier. “Second is the withdrawal of the Finance Bill, 2024, from which we expected to collect approximately Sh344.3 billion.”

To avoid another wave of unrest, the government drastically cut its revenue expectations under the Finance Bill 2025, reducing projected collections by 91 percent to Sh30 billion.

Treasury Cabinet Secretary John Mbadi admitted that fear of renewed protests forced the rethink.