Debt costs eat up 63.5pc of taxes in two months

Treasury Cabinet Secretary Ukur Yatani. PHOTO | FRANCIS NDERITU | NMG

Kenya spent 63.5 percent of tax collections in the first two months of the current financial year to repay its creditors, pointing to an elevated risk of debt distress.

Debt servicing costs amounted to nearly Sh177.95 billion in July and August against a record Sh280.23 billion in tax receipts, the latest Treasury data shows.

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Note: The results are not exact but very close to the actual.