Debt repayments have consumed more than half of the total revenue collected in the first three months of the 2022/2023 fiscal year, according to treasury documents.
According to the National Treasury documents detailing the collected revenues and their respective spending, Ksh.465.2 billion was collected in the months of July, August and September.
Ksh.237 billion was then used in debt repayment, a percentage of 50.9% spent by the country in meeting its debt obligations.
However, in a similar period in the 2021/2022 fiscal year, debt repayment accounted for 57.3 percent of the total revenue collected, signaling a significant improvement. The disbursements of debt repayment were Ksh.238.9 billion out of the total collected amount of Ksh.416.8 billion.
Apart from the revenues collected from taxes, more government borrowing has taken place within the period to suffice other demands, with the treasury borrowing Ksh.86.2 billion in external loans and grants and Ksh.95.7 billion from domestic lenders.
The huge chunk of the national revenue consumed by debts has been a concern among Kenyans, which has seriously burdened national expenditure. As such, most of the funds that would have otherwise been used in development have been channeled toward servicing debts.
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