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flag Kenya spends 76% of monthly tax revenue on debt interest, limiting funds for health, education, and infrastructure.

flag Kenya's debt burden is severely constraining public spending, with 76% of monthly tax revenue—about Sh120 billion—going toward debt interest by August 2025. flag Total public debt reached Sh11.1 trillion by June, and the government expects to spend Sh1.9 trillion on debt repayments in the 2025/26 fiscal year, including Sh1.1 trillion in interest. flag High-cost domestic borrowing, mainly Treasury bonds, accounts for most payments. flag Despite a credit rating upgrade, rising debt service costs are limiting funds for health, education, and infrastructure, leading to medicine shortages, delayed school funding, and public sector strikes. flag Many Kenyans face growing out-of-pocket expenses for essential services. flag The debt-to-GDP ratio stands at 70%, raising concerns over fiscal sustainability and long-term development.

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