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Treasury under pressure to explain unpaid ksh 17.23 billion debt from 30 years ago

3 days ago
2 Min Read

The Treasury is facing questions over an unpaid domestic debt of Ksh 17.23 billion, which has remained unsettled for more than 30 years. The Commission on Revenue Allocation (CRA) wants the Treasury Cabinet Secretary to explain why the debt has not been paid and why the names of the creditors have not been made public.

This has raised concerns about how the government manages its money, especially since the debt has been recorded since before 1997. As of the end of January 2025, Kenya’s domestic debt had reached Ksh 5.93 trillion. This is an increase of Ksh 1.6 trillion since President William Ruto took office in September 2022.

The growing debt has made it difficult for the government to pay what it owes, and many Kenyans are now asking why this old debt has not been cleared. The delay in payment also raises questions about whether there are hidden issues surrounding the debt and why no action has been taken for all these years.

The Treasury has admitted that there are mistakes in budget records amounting to Ksh 73 billion. The Budget Policy Statement (BPS) shows that the total government spending is Ksh 4.336 trillion.

However, the official financial records put the figure at Ksh 4.263 trillion. This difference has led to confusion over how the money has been allocated.

A letter sent to the National Assembly on February 25, 2025, said that the difference is because of money set aside for the Social Health Insurance Fund.

According to the letter, this money was included in the budget for the State Department of Medical Services, but it was not properly recorded in the financial records.

This is what led to the Ksh 73 billion gap. These financial issues have raised many concerns among Kenyans. The government continues to borrow more money while some debts remain unpaid for decades. The mistakes in budget records also make it unclear whether all government money is being used properly.

Many people now want the Treasury to explain why the Ksh 17.23 billion debt has not been cleared and who the real creditors are. Without clear answers, there will be more doubts about how the government is handling public funds.