Projected domestic interest payments

Kenya's domestic debt interest payments are projected to rise steadily over the next five financial years, underscoring the growing cost of servicing local borrowing.

National Treasury projections show interest payments will increase from Sh883.76 billion in the 2025/26 financial year to Sh1.09 trillion by 2029/30. The cost is expected to reach about Sh995 billion in 2026/27, Sh1.0 trillion in 2027/28 and Sh1.04 trillion in 2028/29 before climbing further.

The projections highlight the increasing budgetary burden of servicing domestic debt as the government continues to rely on local borrowing to finance its expenditure.