‘Sin taxes’ growth more than halves despite higher receipts

Times Tower in Nairobi, the headquarters of Kenya Revenue Authority.  

Photo credit: File | Dennis Onsongo | Nation Media Group

Growth in excise tax collections from key drivers such as alcohol, motor vehicles, and voice calls more than halved in the first half of the current financial year, signalling a loss of momentum in one of the government’s most dependable tax streams.

Data by the Treasury shows that excise receipts for the July–December 2025 period rose by a modest 4.31 percent to Sh223.4 billion from Sh214.2 billion a year earlier. This growth marked a steep decline compared to the 11.72 percent recorded in the same period of the previous financial year 2024/25.

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