The enactment of the new VAT law, among other events benefitting tax collection, ensured that government revenue collection was on track in the third quarter of 2013/14, even in spite of slightly slower than expected economic growth and failures by some departments within the Kenya Revenue Authority to meet targets. Unlike revenue performance, the government continued to perform poorly in spending. All Ministries, Departments and Agencies only managed to spend a little over half of their anticipated budgets by the end of third quarter in 2013/14. The bulk of the unspent money was from the development budget, with the biggest culprits being the infrastructure related ministries. In order to speed up spending of the development budget the IEA proposes that the National Treasury establish a robust project implementation system as well as take steps to improve MDAs project management capacity. Related to this is the need to cut subsequent budgets of culpable MDAs as a sanction for perennial under spending. We also propose measures towards strengthening the COB report as well as towards improving the transparency of donor financing.