Debt, pensions consume 48% of revenue as development drops

Nearly half of Kenya’s ordinary revenues collected go towards servicing the country’s debt and paying pensions, and paying salaries for constitutional office holders. This as the national treasury has expressed concerns over the shrinking fiscal space in the country amid growing expenditure. Speaking during the launch of the budget preparation cycle for the financial year 2026/2027, treasury officials noted that ordinary revenues have declined from 18 percent of the gross domestic product in 2023 to 14 percent of GDP, owing to tax compliance gaps and increased tax expenditure.