This archive report was first published on 22 October 2019.
Kenya's public debt has become a significant burden, with repayments accounting for 57% of tax receipts in the first quarter of the financial year.
According to data from the National Treasury, Sh214.79 billion was used for loan repayments in the three months to September, making it the single-largest expenditure in the period.
This has left the government with limited funds for development projects, including building roads, power plants, and revamping the health sector.
The public debt has crossed the Sh6 trillion mark, up from Sh1.89 trillion in June 2013, sparking concerns that the ballooning loans risk hurting the economy due to the huge debt repayment burden.
The government has defended the increased borrowing, saying the country must invest in its infrastructure to spur growth.
However, local and international agencies, including the International Monetary Fund (IMF) and the World Bank, have raised the red flag over Kenya's rising appetite for borrowing to finance State expenditure.
