Kenya’s debt repayments will consume 79.8% of ordinary government revenue in the financial year ending June 2027, squeezing funds available for public services and development projects.the National Treasury projects debt servicing costs will rise 23% to Ksh2.301 trillion from Ksh1.875 trillion in the previous financial year.
Interest payments will account for Ksh1.295 trillion, equivalent to 44.9% of projected ordinary revenue of Ksh2.884 trillion.
The debt service-to-revenue ratio is expected to increase from 72.4% last year, reflecting growing pressure on public finances. Kenya’s public debt stood at Ksh13.12 trillion at the end of June 2026, equivalent to 70.4% of GDP.
Meanwhile, the Business Daily adds that Ksh1.7 trillion of public debt is due within one year to June 2027.
The National Treasury’s Annual Public Debt Management Report shows 12.7% of the Ksh13.2 trillion debt stock will mature within a year, exceeding the 11.9% target under its debt management strategy.
The government may need to borrow afresh to repay domestic investors and external creditors.
