NAIROBI, Kenya — Kenya’s Controller of Budget, Margaret Nyakang’o, has sounded the alarm over the country’s growing debt burden, urging urgent revenue collection reforms and prudent fiscal management.
Nyakang’o, in a report to the National Assembly Liaison Committee, highlighted the increasing cost of debt servicing, which is projected to hit Sh1.91 trillion in the 2024-2025 financial year, up from Sh1.87 trillion in the previous year.
This comes as the average maturity period of public debt shrinks to 7.8 years from 9.4 years in 2023, signaling higher refinancing risks.
The debt repayment allocation includes Sh809.57 billion for principal and Sh1.01 trillion for interest.
Of this, Sh330.71 billion will go towards repaying external loans, with Sh259.91 billion earmarked for interest payments.
Meanwhile, domestic debt obligations stand at Sh569.89 billion in principal and Sh749.97 billion in interest.
Nyakang’o’s report paints a concerning picture of Kenya’s debt trajectory.
In the first half of the 2024-2025 financial year (July-December), the government spent Sh666.34 billion on public debt servicing—an increase from Sh597.58 billion in the same period the previous year.
This surge was largely due to domestic debt repayments, which rose to Sh432.83 billion from Sh355.17 billion.
External debt servicing in the same period amounted to Sh231.29 billion, covering Sh129.60 billion in principal payments, Sh100.89 billion in interest, and additional charges including commitment fees and penalties.
The rising debt obligations underscore the urgent need for fiscal discipline and enhanced revenue collection.
Nyakang’o’s warning comes as the government navigates a delicate balance between servicing existing debt and maintaining essential public spending.
