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A damning new report reveals Kenya is spending shillings meant for textbooks and medicines on servicing a colossal public debt, forcing families to choose between education and health.
Kenya's ballooning public debt is directly strangling the nation's ability to fund basic services, a new report by the Kenya Human Rights Commission (KHRC) warns. The country's obligation to repay its lenders is now consuming the lion's share of state revenue, leaving critical sectors like health and education dangerously underfunded and threatening the future of millions of Kenyans.
The report, titled "The Economics of Repression," details a grim reality: for every ten shillings collected in revenue, nearly seven are immediately swallowed by debt repayments. This leaves a pittance for everything else. The debt service to revenue ratio stood at a staggering 67 per cent in the year to June 2025, a figure that severely restricts the government's fiscal space.
The consequences are being felt in communities across the country. In Nairobi, the real health budget has shrunk from KES 8 billion to KES 7 billion, even as the city's population swells. This has led to medicine shortages and patients being turned away from under-equipped hospitals. A United Nations report highlighted that Kenya is among 22 countries globally that now spend more on debt interest payments than on education.
The education sector, despite receiving the largest slice of the national budget, faces a severe funding crisis. The Treasury has admitted it can no longer fully fund free primary and secondary education. This has resulted in delayed capitation funds, forcing headteachers to suspend classes and leaving schools unable to afford basic materials like chalk. The situation is so dire that foundational programs are at risk, potentially shifting the cost burden of even primary education back to families.
Analysts warn that the relentless focus on debt repayment is creating a 'crowding out effect,' where essential social spending is sacrificed. This has a direct, negative impact on the well-being of ordinary Kenyans, particularly low-income households who rely heavily on public services. The World Bank has noted that this fiscal strain limits investment in infrastructure and has contributed to a fall in real wages since 2019.
The KHRC report emphasizes that the heavy spending on debt has resulted in "paltry amounts" being spent on essential services, eroding the economic and social rights of citizens. With debt servicing being the first charge on the Consolidated Fund, it is a priority expenditure that must be paid before other allocations, including salaries or development projects.
As the government navigates this precarious financial landscape, the choices it makes in the upcoming budget cycle will be critical. The question remains whether Kenya can restructure its priorities to invest in its people, or if the nation's future will continue to be mortgaged to service its past borrowing.
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