The Central Bank of Kenya's fiscal year 2018 report shows government spending totaled KSh2.11 trillion, with KSh1.32 trillion allocated to salaries and recurrent expenses, KSh485.7 billion for development projects, and KSh306.2 billion transferred to county governments.
The report noted that development expenditure declined by 24.1% year-on-year, accounting for 23% of total government spending and net lending. Recurrent expenses rose 11.9% to KSh1.3 trillion, making up 62.5% of overall expenditures.
Economic analysts warned that the rising reliance on recurrent costs threatens long-term fiscal stability. They emphasized the need for investment in revenue-generating projects to address Kenya's growing public debt, which increased from KSh2.37 trillion in 2014 to KSh5.04 trillion by 2018—a 112% rise over four years.
