Cabinet Secretary for National Treasury and Economic Planning John Mbadi has said that the government will try to balance between servicing debts and providing services for the people.
Speaking on the night of Monday, June 9, 2025, during an interview with one of the local TV stations, Mbadi revealed that the country has high debt servicing costs.
Mbadi revealed that Kenya spends over Ksh1.3 trillion annually on debt servicing, a figure that represents a significant portion of the national budget.
However, the former Orange Democratic Movement (ODM) National Chairman noted that a country cannot service debts and fail to provide services to the people.
Taxes
Mbadi emphasised that it is the people who give the country the taxes it uses to service its debts and that they would also expect the government to provide services.
“There are two things to balance here. First, as a country, we have a high debt stock and debt repayment, or debt servicing costs. We spent over Ksh1.3 trillion on debt servicing. But you cannot just service debts; much as you want to control debts, you cannot service debts, and you fail to provide services to the people because, again, those who are giving you taxes to service your debts would also expect you to provide services,” Mbadi said.
Mbadi went ahead to list some of the key areas the government intends to focus on in terms of providing services.
He says the country has to provide services in terms of education, health, water, road maintenance, among other services.
Mbadi’s budget estimates
Mbadi is expected to deliver his first-ever national budget estimates on June 12, 2025.
The CS will be making history as he reads his inaugural estimates as the man in charge of the country’s granary, following his appointment to the plum post last year.
He, however, faces an unprecedented test as he prepares to unveil the estimates against the backdrop of a debt-strained economy still reeling from last year’s anti-Finance Bill protests.
The budget will determine not only Kenya’s economic trajectory but also Mbadi’s political future, having been picked as one of the experts from the ODM party to help steady the country.
This budget includes allocations for various sectors, with education and infrastructure taking a significant portion of the total budget.
The National Treasury had released the 2025/26 Budget Policy Statement, raising total budget estimates to Ksh4.26 trillion from Ksh3.98 trillion in the previous fiscal year.
Revenue is projected at Ksh3.39 trillion, with ordinary revenue expected to hit Ksh2.84 trillion, supported by ongoing tax reforms.
The government plans to spend Ksh3.1 trillion on recurrent expenditure, Ksh725.1 billion on development, and Ksh436.7 billion in county transfers.
