Banks to pocket Sh342bn in interest on State loans

National Treasury will pay Sh986.7 billion to local lenders and Sh267.5 billion to external lenders...

✨ Key Highlights

Kenyan banks are set to earn a significant amount in interest from loans extended to the government, reflecting the country's growing public debt. By the 2026/27 financial year, local financial institutions are projected to receive Sh500 billion in interest payments.

Major commercial banks are expected to pocket approximately Sh341.8 billion in interest on government loans.
This earning constitutes 40 per cent of the total projected interest payments of Sh1.25 trillion for the 2026/27 financial year.
The substantial interest reflects high rates and the significant portion of domestic debt, which made up 56.3 per cent (Sh7.3 trillion) of Kenya’s total public debt by the end of June 2026.

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