Taxpayers forked out an additional Sh89.4 billion in interest payments on the government’s domestic debt in the year to June 2024, reflecting the elevated interest rates on debt securities and increased local borrowing for budgetary purposes in the period.
Disclosures by the National Treasury show that the interest payments rose to Sh622.5 billion from Sh533.1 billion in the 2022/2023 fiscal year, leading to an increase in the ratio of debt service to revenue and GDP —key metrics in measuring public debt sustainability.
