Cost of Treasury loans from CBK falls 55pc on lower rates
Treasury’s cost of borrowing fell from Sh3.48 billion in a similar period a year earlier...
✨ Key Highlights
The National Treasury's cost of emergency borrowing from the Central Bank of Kenya (CBK) fell by 55% in the six months ending December 2025. This significant drop reflects early impacts of implemented reforms and eased interest rates.
- Interest paid dropped to Sh1.58 billion, down from Sh3.48 billion in the previous similar period.
- The Controller of Budget attributes the decline to the Treasury Single Account (TSA) system and a drop in CBK interest rates.
- The average interest rate on borrowings stood at 9.41% per annum, down from 12.3% a year earlier.
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MPs greenlight Sh4.7tn spending for 2026/27 - March 2026
Kenyan Members of Parliament have approved the 2026/2027 Budget Policy Statement, a framework allowing for total government spending of Sh4.7 trillion. This sets spending priorities and directs fiscal allocations for the upcoming financial year. Separately, the National Treasury's cost of emergency borrowing from the Central Bank of Kenya fell by 55% in the six months ending December 2025, reflecting early impacts of implemented reforms and eased interest rates. Meanwhile, MPs have revised the government's plan to sell a portion of its stake in Safaricom PLC, introducing enhanced protections for employees and business partners in the multibillion-shilling transaction.
