Development spend fears as debt interest payment to hit Sh1.2trn
Why your tax shillings are buying less development as debt interest consumes 25pc of the budget...
✨ Key Highlights
Kenya's public debt interest payments are projected to reach a concerning Sh1.2 trillion by the fiscal year 2026/27, threatening to significantly reduce funds available for development spending.
- The Parliamentary Budget Office (PBO) warns that rising debt interest payments could crowd out essential development initiatives.
- Interest payments are estimated to consume over 25 percent of the total budget in the current fiscal year 2025/26, amounting to Sh1.1 trillion.
- The PBO also highlighted inefficiencies in development expenditure absorption, with actual spending lagging behind allocated budgets despite overall budget increases.
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