The National Treasury has raised expenditure on domestic interest repayments for this financial year by Sh57.33 billion after it opted to gradually reduce the issuance of cheaper short-term debt by borrowing more longer-dated bonds.
The Public Debt Management Office (PDMO) attributes the 13.59 percent rise of the finance costs to Sh479.22 billion in the budget to the growing pile of bonds which matures in five or more years and reduction in Treasury bills which are repaid in a year or less.
