Debt Eats 77% of KRA Tax Revenues in Q1, Treasury Report Reveals

Jukwaa

🇰🇪 Breaking It Down

Figures in the National Treasury’s cash disbursement report reviewed by Kenyans.co.ke show that by September 30, debt-related payments absorbed more than three-quarters of the taxes collected.

The government’s original annual budget estimates had projected Ksh2.316 trillion for public debt servicing against expected tax revenue of Ksh2.859 trillion, about 81 per cent for the full financial year.

The first-quarter figures highlight the scale of the government’s debt obligations relative to its main revenue source as it implements the current budget.

📌 What You Need to Know

Treasury’s June 2026 Public Debt Bulletin put Kenya’s total public debt at Ksh13.12 trillion by the end of that month, equivalent to 70.44 per cent of gross domestic product (GDP).

Domestic borrowing accounted for Ksh7.327 trillion, or 55.8 per cent of the total, while external debt stood at Ksh5.794 trillion, representing 44.2 per cent.

Multilateral lenders accounted for 54.9 per cent of Kenya’s external debt, led by the International Development Association (IDA), which owed Ksh1.77 trillion, followed by the African Development Bank and African Development Fund (ADB/ADF) at Ksh565.29 billion and the International Monetary Fund (IMF) at Ksh452.12 billion.

Commercial debt made up 26.8 per cent, including Ksh1.36 trillion in international sovereign bonds (Eurobonds) and Ksh177.23 billion owed to commercial banks.

Bilateral creditors accounted for 17.1 per cent, with China being the largest at Ksh619.82 billion, followed by France at Ksh100.08 billion and Japan at Ksh91.20 billion.

As the government continues to pursue additional external funding , debt levels and repayment costs have remained a concern among members of the public, politicians and government officials amid complaints over high taxes and pressure on public finances.

📰 Source: Kenyans.co.ke

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