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Kenya spends 76% of monthly tax revenue on debt interest, limiting funds for health, education, and infrastructure.
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.
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.
High-cost domestic borrowing, mainly Treasury bonds, accounts for most payments.
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.
Many Kenyans face growing out-of-pocket expenses for essential services.
The debt-to-GDP ratio stands at 70%, raising concerns over fiscal sustainability and long-term development.
Kenia gasta el 76% de los ingresos fiscales mensuales en intereses de la deuda, limitando los fondos para la salud, la educación y la infraestructura.