A record Sh1.35 trillion has been set aside by President William Ruto’s administration to pay down the national debt.
For the 2024–25 fiscal year, this amount accounts for 47% of the anticipated regular revenue.
It highlights the hardship of debt repayment and represents the highest allocation towards it in the last five years.
The sum allotted is 3 and a half times greater than that which is given to the 47 county governments, 32 times greater than that which is given to Parliament, and 56 times greater than that which is given to the judiciary.
“The Bill has taken into account debt related costs. This comprises of the annual debt redemption costs as well as interest payment for domestic and external debts,” Treasury Cabinet Secretary Njunguna Ndung’u stated.
The Division of Revenue Bill allocates national revenue to the national government and county governments.
Treasury has allotted Sh391.11 billion to the devolved entities and Sh2.54 trillion to the national government in the bill.
The Treasury anticipates generating Sh2.94 trillion in ordinary revenue.
In comparison to the Sh2.56 trillion anticipated for the current fiscal year, the Sh2.41 trillion forecast for 2022–2023 fiscal year, and the Sh1.77 trillion projected for the 2021–2022 fiscal year, this indicates an increase.
The state allotted Sh1.18 trillion for debt repayments in the current fiscal year, with Sh930.35 billion for the fiscal year 2022-23.
In 2021–22, debt repayment amounted to Sh1.17 trillion, compared to Sh829.90 billion in the previous year.
Kenya is facing severe financial hardship. The country’s public debt currently stands at more over Sh11 trillion.
The decision compelled the government to change the debt cap from a nominal sum to a percentage of the country’s GDP.
