Kenya has exactly eight months to settle a Sh161 billion debt, Treasury Cabinet Secretary John Mbadi has said. Speaking on Spice FM on Thursday, February 27, Mbadi noted that the debt, which accrued from commercial loans (Eurobonds and syndicated loans), is due by October 2025. "In September, we are supposed to pay Sh25.8 billion to the Trade and Development Bank, another Sh10 billion, and also Sh83.5 billion.
Add another Sh3.4 billion, and that gives you Sh123 billion by October," he told Spice FM. "This is besides the Eurobond…that is the kind of pressure we are in," he added, noting that by May 2027, Kenya will be required to pay a total of Sh116 billion in Eurobond repayments, split into three equal annual payments of Sh38.7 billion.
His remarks come a month after a report by the Auditor-General highlighted rampant misuse of public funds. For instance, in the 2023/2024 Financial year report, Kilifi County spent over Sh70 million on office furniture and equipment. Of this, Sh634,685 worth of items were delivered on June 30, 2023.
An audit in October 2024 found that a 55-inch TV worth Sh151,450 was not functional, while eight office chairs and four desks had not been issued.
