The reality of the piling debt burden is dawning on Kenya following the revelation of the latest data that the Treasury spent 67 percent of taxes on servicing loans owed to domestic and external creditors.
The cash crunch was inevitable as Kenya struggled with a bloated public wage bill, wastage and investment in mega projects, including other recurrent expenditures.
Meanwhile, an even wider budget deficit beckons amid reports of revenue collection shortfalls. The current slowdown in economic activities does not bode well for a country in dire financial straits, especially as the private sector grapples with rising costs and job cuts.
The Treasury has budgeted Sh1.75 trillion towards servicing debts this fiscal year compared to Sh1.16 trillion in the last financial year.
Some of the financial constraints are self-inflicted following binge borrowing from China, Eurobond and syndicated commercial loans whose repayments are now falling due.
The William Ruto-led administration has spelt stringent austerity measures and ordered budget cuts to tame the runaway public spending.
However, such measures have not borne fruit in the past as public servants find ways to evade them, costing taxpayers billions of shillings in wastage.
We urge the government to tame errant officials who squander public resources by making them pay for their sins of omission and commission through surcharging them and other administrative sanctions.
Also, the government should crack down on graft rife at the national and county levels.
Financial fidelity and efficient use of public resources will go a long way in ensuring debt payments do not compromise service delivery and development plans.