Kenya faces a severe fiscal crisis due to poor public debt management, with a remarkable 68% of ordinary tax revenue annually allocated to debt servicing. This financial strain is hindering critical public services and necessitates a radical restructuring of the nation's debt, according to Cuba Houghton, budget financing lead at Bajeti Hub.

• 68% of Kenya's ordinary tax revenue is used for debt servicing, limiting funds for essential services like education and aid to the poor.
• Cuba Houghton, budget financing lead at Bajeti Hub, advocates for bold debt restructuring to address Kenya's fiscal crisis.
• Recent efforts, including the Finance Act 2023, boosted tax revenue by 14%, but debt interest payments surged by 22% over the same period, indicating the inadequacy of current measures.
• Kenya's recent $1.5 billion Eurobond issuance to repay a maturing $2 billion Eurobond highlights piecemeal restructuring efforts.
• Debt restructuring, while complex and carrying risks to credit ratings, offers a pre-emptive solution to avoid default and enable long-term fiscal sustainability.

Kenya's pension industry closed 2024 with an impressive Ksh 2.23 trillion in retirement savings, an increase from Ksh 1.84 trillion in 2023. Despite this growth, the industry faces significant challenges including concentration risks, specifically overexposure to government securities, and a surge in unpaid contributions.

• Nearly half (48.5%) of the industry’s assets are invested in government securities.
• Charles Machira, CEO of the Retirement Benefits Authority (RBA), highlighted the need for diversification.
• Unpaid contributions, money deducted but not remitted to pension schemes, have more than doubled since 2021, reaching Ksh 69.4 billion.
• Operating costs for pension schemes jumped by 15% to Ksh 41.9 billion.