Survival spending: Debt consumes half of budget as projects wait

President William Ruto chairs cabinet meeting on December 15, 2025 / PCS

Details have emerged of how the government is financially cornered, straining to meet huge debt obligations while critical development projects stall due to a severe cash crunch.

The Controller of Budget’s review of the first three months of the 2025-26 financial year shows the exchequer is being stretched thin by debt repayments, pending bills and recurrent spending, leaving little for long-term public investment.

CoB Margaret Nyakang’o reveals that the Kenya Kwanza team is living from hand to mouth, a situation that threatens to crowd out development and deepen economic woes.