Details have emerged of a biting cash crunch in President William Ruto’s administration amid a huge debt that continues to take a toll on operations.
An exclusive Treasury report on the status of receipt and exchequer issues as of Wednesday paints a gloomy picture of government in the red.
In the report that covers four months—July to October 29—expenditure on debt repayment has overtaken the cost of running government, in what exposes the deep cash crisis that has hit the Kenya Kwanza administration.
In the four months, the government spent Sh395.57 billion on debt repayment.
This translated to 45.4 per cent of the 1.91 trillion allocated for debt repayment for the entire year and 39.2 per cent of the total exchequer issues.
Debt repayment is the single biggest government expenditure line over the period.
This is compared to Sh394.81 billion incurred on recurrent expenses, or 39.1 per cent of the exchequer issues over the period.
