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Why debt in any form is just deferred tax

For the year to June 30, 2025, Kenya spent Sh1.91 trillion on debt repayments. Of this, Sh809.57 billion was for principal repayments, and Sh1.01 trillion for interest payments, most (Sh750 billion) being domestic interest payments.

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By  Ndiritu Muriithi

Columnist

Ecocapp Capital

When I made an observation that debt is deferred tax in a speech last Monday, some in my audience were surprised. We were at KRA @ 30 celebrations.

So the context was how Kenya, and indeed all nations, finance their budgets. From taxes, borrowing and donations, it was observed.

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Note: The results are not exact but very close to the actual.

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