MPs raise alarm over Ksh533.7B domestic debt interest as treasury reveals half of KRA revenue goes to debt

The National Assembly's Public Accounts Committee (PAC) has voiced concerns to Kenya's National Treasury over the substantial interest payments on domestic debt during the 2023/2024 financial year. The PAC raised the alarm on October 29, 2026, at a meeting in Naivasha, Nakuru County, questioning the total cost of public debt and the impact on government finances.

Principal Secretary Chris Kiptoo appeared before the committee and revealed that half of all revenue collected by the Kenya Revenue Authority (KRA) goes towards servicing debt interest, amounting to Ksh533.7 billion for that period. The committee's focus on the government's public debt obligations comes amid growing worries about debt servicing and its impact on the availability of resources for public services and infrastructure.

Kiptoo explained that the government's increased reliance on domestic borrowing stemmed from limited access to external financing, and noted that domestic borrowing currently accounts for 57% of Kenya's public debt. He also reported a decline in domestic interest rates since 2023/2024, which has helped reduce the cost of borrowing.

The PAC's concerns are exacerbated by the fact that half of the reported Ksh533.7 billion interest payment figure differs from the Ksh622.5 billion recorded by the Treasury in its annual debt report for the same period. The committee's call for a national discussion on public debt highlights the pressure debt servicing places on Kenya's public finances.