MPs question Treasury over Sh533.7bn domestic debt interest

The National Assembly Public Accounts Committee has raised concerns over the rising cost of public debt after the National Treasury revealed that the government spent Sh533.7 billion on interest for domestic borrowing in the 2023/2024 financial year.

The amount formed part of the Sh762.44 billion paid in total interest on public debt during the period under review.

The committee, chaired by Butere MP Tindi Mwale, raised concerns in Naivasha, Nakuru County on October 29, 2026, while questioning Treasury Principal Secretary Dr. Chris Kiptoo on findings contained in the Auditor-General’s reports for the financial year.

Lawmakers called for a national conversation on the growing public debt burden and sought clarification on the total amount owed by the government.

Kiptoo attributed the increase in domestic borrowing to limited access to external financing during the period, adding that interest rates on local borrowing remained high because they were determined by prevailing market conditions.

He also noted that the Kenyan shilling had been under pressure before the partial repayment of the Eurobond in 2024.

The Principal Secretary told the committee that domestic debt currently accounts for 57 per cent of Kenya’s public debt, while external borrowing makes up the remaining 43 per cent.

However, he said domestic interest rates had since declined, helping to reduce borrowing costs.

Kiptoo further disclosed that half of every shilling collected by the Kenya Revenue Authority goes towards paying interest on public debt. He welcomed the committee’s proposal for a national discussion on the sustainability of government borrowing.

The lawmakers also questioned the Treasury over pending bills, which they said stood at Sh175 billion.

Kiptoo explained that historical pending bills had previously reached Sh255 billion, but the government had paid Sh80 billion, leaving Sh175 billion outstanding.

He added that Cabinet had approved the settlement of the remaining bills, with payments expected to begin within two weeks.

The committee also sought answers over delays in the release of exchequer funds to government entities.

Kiptoo maintained that the Treasury was up to date with disbursements, insisting that county governments, state departments and state agencies were not owed any money by the Exchequer.