Kenya's domestic debt servicing costs have exceeded KSh 1 trillion for the first time in Fiscal Year 2024/25, reaching KSh 1.05 trillion. This significant increase of 25.9% from the previous fiscal year is primarily driven by rising interest payments on Treasury bonds and bills, absorbing 43.6% of revenues.

• Kenya's domestic debt servicing reached KSh 1.05 trillion in FY 2024/25, a 25.9% increase from KSh 830.2 billion in FY 2023/24.
• The Controller of Budget reported that rising interest payments, particularly from short-term debt instruments, are the main cause.
• Domestic debt servicing now absorbs 43.6% of revenues, exceeding the IMF's recommended ceiling of 30%.