Kenya debt burden, Treasury reveals how much money could go to loan repayments in 2027

Kenya’s growing public debt burden is once again attracting attention after new Treasury projections revealed how much money the country could spend servicing its loans in the coming financial years.

According to the draft 2027/28 Budget Policy Statement released in October 2026, Kenya’s public debt servicing costs are projected to rise to approximately KSh1.918 trillion in the 2027/28 financial year.

The figures raise important questions about how much money will remain available for essential government services, infrastructure development and other national priorities.One particularly striking detail concerns interest payments.

The Treasury projects that interest payments alone will consume approximately 42 per cent of ordinary government revenue in the 2026/27 financial year.

This means a significant portion of the money collected through taxes and other ordinary revenue will be required to meet the cost of borrowing.

The situation is further complicated by the projected budget deficit.

Kenya’s fiscal deficit is expected to reach approximately KSh1.353 trillion in 2027/28, representing 5.9 per cent of the country’s Gross Domestic Product (GDP).

The government plans to finance the shortfall through domestic and external borrowing.

However, the figures do not necessarily mean that all government spending is going towards debt. The country must also finance education, healthcare, security, agriculture and infrastructure.

For ordinary Kenyans, the bigger concern is whether public borrowing will translate into meaningful development and improved living standards.

As the country prepares for another budget cycle, transparency, accountability and responsible management of public resources remain important.

Ultimately, Kenyans will want to see tangible results from the money borrowed in their name.

Source: Kenya National Treasury – Draft 2027/28 budget policy statement

newsatyourcomfort feedback-opera-news-app@opera.com