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Treasury Cabinet Secretary John Mbadi said the bond issue will build on a bridge financing programme worth Sh104 billion that government completed recently to help ease liquidity pressures faced by road firms. Out of that amount, Sh93 billion has already been distributed to contractors, allowing many stalled projects to resume and speeding up work at sites that had nearly been abandoned.
National Treasury records indicate the country’s total public debt reached Sh12.06 trillion in September 2025. Of this, Sh6.66 trillion was sourced locally while Sh5.39 trillion came from external lenders, placing the debt level at 67.3 per cent of the nation’s Gross Domestic Product.
The payment arrangement follows advisory input from the Salaries and Remuneration Commission and weeks of pressure from university unions demanding that the government honour the negotiated terms. Staff had accused authorities of delaying obligations contained in the collective bargaining agreements, saying the situation had left many workers struggling financially.
CS Ogamba said the council’s approved recurrent budget for the 2024/25 financial year allocated Sh5.9 billion for national assessments and examinations. Out of this, Sh3 billion was designated for the KCSE exams, Sh2 billion for the Kenya Junior School Education Assessment (KJSEA), and Sh900 million for the Kenya Primary School Education Assessment (KPSEA). However, the total requirement stood at Sh12.72 billion, creating a funding gap of Sh6.8 billion.
Registrar of Political Parties John Cox Lorlionokou said the delay has affected the smooth running of political parties, adding that the ORPP is in constant communication with the Treasury to secure the pending allocations.
Previously, the Treasury had issued a July 23 circular stating that only contracts processed through PPRA would be eligible for payment. This requirement was suspended by the High Court following a petition from the Council of Governors and other stakeholders.
The Treasury report underscores that such dependency undermines accountability and financial efficiency, making it difficult for counties to achieve self-sufficiency through own-source revenue. Despite setting ambitious collection targets, many counties continue to fall short, relying heavily on national government transfers to fund their operations.
The office’s total allocation in the national budget was Sh3.07 billion, with Sh100 million set aside for development projects, and the rest for day-to-day operations. If the current spending trend continues, officials warn the budget may be fully utilised by March 2026 unless adjustments or supplementary approvals are made.
The Parliamentary Budget Office (PBO), which provides technical guidance to Parliament on fiscal matters, said this shortfall highlights the need for a revised taxation approach that balances revenue growth with incentives for investment.
Treasury records show the loans were drawn from multilateral, bilateral, and commercial lenders, supporting different state-funded projects. This means the government was taking on Sh23.9 billion monthly, equivalent to Sh795.8 million per day and Sh532.4 million every hour.
According to Treasury records, as of June 2024, Kenya owed TDB about $418 million (Sh54 billion) in syndicated loans scheduled to mature between September and early October 2025. The largest portion, about $314.2 million (Sh40.6 billion) was due on September 19, while the remaining $116.3 million (Sh15 billion) was to be settled by October 6.
Mbadi said the proactive move aims to manage upcoming Eurobond maturities and prevent debt distress.