Kenya spent Sh1.35 trillion—about 42 per cent of total government receipts—on debt servicing in the first nine months of FY2025/26.

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NAIROBI, Kenya, Jun 10 — More than four out of every ten shillings received by the government in the first nine months of the 2025/26 financial year went toward servicing public debt, with repayments totaling Sh1.35 trillion against total receipts of Sh3.21 trillion, the Controller of Budget (CoB) has reported.

A CoB reported released on Wednesday singled out debt payments as the largest share of expenditure under the Consolidated Fund Services (CFS), which finances obligations charged directly on the Consolidated Fund.

According to the report, total CFS expenditure stood at Sh1.55 trillion as at March 31, with debt repayments accounting for nearly 87 percent of the amount spent.

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The expenditure comprised both domestic and external debt obligations and came as the country’s public debt stock climbed to Sh12.82 trillion, equivalent to 69.9 percent of GDP.

The CoB noted that the debt level exceeds Parliament’s recommended debt threshold of 55 per cent of GDP by almost 15 percentage points.

The findings highlight the growing share of government resources being directed toward debt obligations at a time when ministries, departments and agencies continue to face funding pressures and implementation delays.

The report further revealed that pending bills remained elevated at Sh465.87 billion as of March 31,

The figure comprised Sh271.16 billion in recurrent expenditure obligations and Sh194.71 billion relating to development projects.

The report indicates that the stock of unpaid bills remains a significant fiscal risk, affecting suppliers, contractors and service providers engaged by government entities.

📰 Source: Capital FM Kenya