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Originally published by The Standard BusinessJuly 21, 2026
8h ago
Borrowing spree: How expensive loans have pushed debt servicing to Sh862b

The National Treasury departed from the approved Medium-Term Debt Management Strategy by significantly increasing domestic borrowing without parliamentary approval...
✨ Key Highlights
The Kenyan government has incurred substantial costs due to expensive domestic borrowing, with interest payments on local loans significantly outweighing those on external debt.
- Sh861.7 billion was spent on interest payments for domestic debt, 82% of total debt servicing costs.
- The National Treasury bypassed Parliament to access these funds.
- Servicing local loans cost taxpayers more than three times as much as foreign borrowing in the year to June 2025.
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