No arrears on state securities – Treasury

The National Treasury has dismissed claims of unpaid interests on government securities, insisting that all dues are paid promptly.

In a press statement issued on March 31, Treasury clarified concerns raised in a recent report by the Controller of Budget regarding the settlement of Treasury Bond interest obligations for May and June 2025.

The report had cited amounts totalling Sh53.56 billion, which appeared outstanding in the Exchequer reporting framework.

According to the statement, all Treasury Bond interest obligations for the stated period were settled in full and on time, in line with the Government’s debt servicing schedule.

The Treasury explained that while the figures may have seemed pending in official reports, but the payments were duly financed and settled through the government overdraft facility at the Central Bank of Kenya.

The statement emphasised that the use of the overdraft facility is a standard and lawful mechanism for managing short-term liquidity within government operations.

It noted that this practice is provided for under the applicable legal and institutional framework and is consistent with established cash and liquidity management practices.

“At no point were these obligations in arrears,” the Treasury said, adding that no claims, complaints or disruptions were recorded from bondholders or market participants. This, it said, was proof that all payments were effected as they fell due.

The clarification comes amid heightened public scrutiny of government debt management and concerns over fiscal transparency.

By addressing the issue directly, the Treasury sought to reassure domestic and international partners that Kenya remains committed to honouring its financial obligations without delay.

The statement further underscored the government’s commitment to prudent public financial management, transparency and the timely servicing of debt. “The National Treasury remains committed to prudent public financial management, transparency and the timely honouring of all government obligations,” the statement said.

The assurance is expected to calm market jitters and reinforce confidence among investors in Kenya’s debt instruments.

The press statement was signed by  Chris Kiptoo, Principal Secretary at the National Treasury, who reiterated that the government continues to prioritise fiscal discipline and accountability in managing public resources.