Quick Answer
Most of Kenya’s public money comes from taxes, collected by the Kenya Revenue Authority (KRA). The government also borrows and receives grants. All nationally raised revenue flows into the Consolidated Fund before being shared and spent.
Key facts
- Taxes are the main source of public money.
- The Kenya Revenue Authority (KRA) collects national taxes.
- The government also borrows and receives grants.
- Revenue is pooled in the Consolidated Fund, then shared.
Taxes: the main source
The bulk of public money is tax, collected by the Kenya Revenue Authority (KRA). The main taxes are:
- Income tax — on individuals’ and companies’ earnings (including PAYE deducted from salaries);
- Value Added Tax (VAT) — on most goods and services;
- Excise duty — on specific goods such as fuel, alcohol and airtime;
- Customs and import duties — on goods entering the country.
Counties also raise their own money — “own-source revenue” — through fees, licences, parking, market charges and property rates.
Borrowing and grants
When revenue is not enough to cover planned spending, the government borrows — from domestic and external lenders — and may receive grants. Borrowing creates public debt, which is why responsible debt management is a recurring public-finance debate.
From collection to the Consolidated Fund
Nationally raised revenue is paid into the Consolidated Fund, the central public account. From there it is shared between the national government and the 47 counties (which receive at least 15%) and then spent through the budget.
Why this matters to you
Every shilling government spends starts as tax that you and others pay. Knowing the sources explains why taxes and borrowing are debated so fiercely — they fund everything else.
Frequently asked questions
Who collects taxes in Kenya?
The Kenya Revenue Authority (KRA).
What are the main taxes?
Income tax (including PAYE), VAT, excise duty, and customs duties.
Where does collected money go first?
Into the Consolidated Fund, before it is shared and spent.
Sources & references
- Constitution of Kenya 2010, Articles 206 and 209–210 — klrc.go.ke
- Kenya Revenue Authority (KRA) — kra.go.ke
- Public Finance Management Act, 2012 — kenyalaw.org