The government spent Sh415.7 billion or more than half of the cash it borrowed in the financial year ended June 2024 on recurrent expenses such as payment of salaries and utilities in breach of the law, highlighting the impact of missed tax collections amid spending pressure.
Latest Treasury disclosures in the draft 2024 Budget Review and Outlook Paper (BROP) show that of the Sh766.4 billion loans the State tapped in the review period, just Sh350.7 billion or 45.8 percent was used to fund development projects, leaving the rest for recurrent spending.
