The share of the government’s borrowed funds ring-fenced for development projects has fallen to the lowest level in more than a decade, exposing increased reliance on debt to fund recurrent spending such as salaries and wages amid perennial shortfalls in tax collection.
Treasury data shows that the government spent Sh582.9 billion on development projects in the fiscal year to June 2025, equivalent to 56.4 percent of the net borrowings of Sh1.03 trillion from domestic and external lenders in the period.
