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.