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Originally published by The Standard Business
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July 21, 2026
8h ago

Borrowing spree: How expensive loans have pushed debt servicing to Sh862b

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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