Kenya’s Debt Servicing Consumes 92% of Tax Revenue, Squeezing Public Spending
NAIROBI – Kenya’s debt burden reached a critical point in the third quarter of 2025, with a staggering 92% of all tax revenue collected being used to service public debt, according to recent financial data.
The National Treasury’s figures reveal that from July to September 2025, the government collected Sh553.7 billion in taxes. Out of this, Sh509.6 billion was allocated to repay the country’s creditors. This left a meager Sh43.9 billion to fund all government operations, including the payment of civil servant salaries, healthcare, education, and other essential public services.
The latest data also shows that Kenya’s total public debt has ballooned to Sh11.81 trillion, an amount equivalent to 67.8% of the nation’s Gross Domestic Product (GDP). The immense pressure from debt repayments has forced a severe cutback on development projects, with such spending falling to just 4.5% of the government’s total expenditures.
This fiscal crisis is the culmination of a trend that has escalated over the past decade. The public debt has grown significantly under successive administrations, including those of former President Uhuru Kenyatta and the current government of President William Ruto. The situation has been exacerbated by persistent revenue shortfalls and continued borrowing, despite growing public demands for greater fiscal transparency and accountability.
The figures have ignited concern among citizens and economists, highlighting the severe constraints on the government’s ability to invest in the country’s future and maintain essential services while managing its substantial debt obligations.
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