NAIROBI, Kenya – Kenya is diverting more than two-thirds of its ordinary revenue to debt repayments and salaries, leaving critical services underfunded as millions struggle with soaring living costs, a new human rights audit has revealed.
A Kenya Human Rights Commission (KHRC) report released this week warns that 68 per cent of the government’s revenue now goes to debt servicing and the public wage bill — a fiscal squeeze it says is weakening essential services and deepening vulnerabilities among households, youth, older persons and people with disabilities.
The report, The Economics of Repression, shows that Kenya’s public wage bill alone consumes 41.8 per cent of ordinary revenue, far above the 35 per cent legal ceiling.
With ballooning loan repayments also taking a large share, the State is left with less than 10 per cent of revenue for development spending, well below the constitutionally required 30 per cent.
KHRC analysed national expenditure trends from 2020/21 to 2024/25 and conducted interviews with Nairobi residents to assess the social fallout of the fiscal crisis.
The findings paint a dire picture: government spending priorities overwhelmingly favour creditors and bureaucracy, while vulnerable families bear the cost of austerity.
Debt Burden Deepens
Interest payments on public debt have jumped from 18 per cent to 25 per cent of total government expenditure within four years — a rise KHRC says is draining funds needed for health, education, social protection and infrastructure.
Development spending, meanwhile, has dropped to below 25 per cent, even as the cost of living hits historic highs.
Support for vulnerable citizens has shrunk sharply. Allocations for older persons have fallen from Sh18 billion to Sh15 billion, funding for orphans dropped from Sh7 billion to Sh5 billion, and support for persons with severe disabilities continues to decline in real terms.
Nairobi’s Crisis: Big Population, Falling Budgets
Despite serving more than 5.7 million residents, Nairobi’s real health expenditure has dropped from Sh8 billion to Sh7 billion.
At the same time, the county’s pending bills have surged to 300 times its total expenditure, while its wage bill consumes nearly half the budget — leaving little for actual service delivery.
‘Hospitals Without Medicine’
KHRC says the fiscal strain is resulting in real-world suffering.
“Families described hospitals without medicine, patients turned away for lack of insurance, and disrupted schooling caused by delayed capitation funds,” the report states.
Youth cited job losses amid heavy taxation, while persons with disabilities said they wait years for support.
Schools experience overcrowded classrooms, pharmacies lack basic drugs, and vulnerable households are locked out of public housing programmes.
Government Choices Under Scrutiny
The watchdog accuses the Kenya Kwanza administration of prioritising political and bureaucratic interests over public welfare, warning that corruption and waste have worsened the situation.
It adds that Kenya’s borrowing patterns are heavily shaped by political cycles.
Amendments to the Public Finance Management Act in 2014 granted the Treasury Cabinet Secretary expansive powers to borrow without parliamentary approval — a shift KHRC says has fueled debt levels now exceeding Sh12 trillion.
The organisation argues that the country’s fiscal direction violates constitutional obligations to progressively realise economic and social rights under Articles 202, 203 and 223.
Wage Bill Still Above Legal Limit
While the wage bill has dropped from 54.8 per cent of ordinary revenue in 2020/21 to 41.8 per cent in 2024/25, it remains well above the legal cap.
KHRC attributes this to administrative staff expansion, staffing pressures at both levels of government and ongoing demands for wage harmonisation.
The commission says wage bill reforms must protect essential services and prioritise vulnerable groups, cautioning that Kenya’s current path threatens long-term development goals, including Vision 2030.
