Controller of Budget: State disbursed Ksh1.5T for debt, pensions and other obligations in nine months
By Sharon Atieno, June 23, 2026The national government disbursed Ksh1.50 trillion under the Consolidated Fund Services (CFS) in the first nine months of the 2025/26 financial year, with public debt repayment taking the largest share as pressure mounted on the country’s growing fiscal obligations, a new report by the Controller of Budget has revealed.
According to the National Government Budget Implementation Review Report released on Monday, June 22, 2026 by Margaret Nyakang’o, the amount represented 70 per cent of the annual net allocation, marking a significant increase compared to Ksh1.22 trillion, or 53 per cent, disbursed during a similar period in the 2024/25 financial year.
The Consolidated Fund Services (CFS) comprises funds allocated towards Repayment of Public Debt,(domestic and foreign) and government-guaranteed loans to parastatals, Pensions and Gratuities, Salaries and Allowances to Constitutional Officeholders and Miscellaneous Services, and Subscriptions to International Organizations.
Debt repayment consumes biggest share
The report shows the government allocated Ksh2.14 trillion to Consolidated Fund Services in the current financial year, accounting for 46 per cent of the country’s gross national budget, underscoring the weight of mandatory obligations on public finances.
“In the first nine months of FY 2025/26, exchequer issues to CFS amounted to Ksh1.50 trillion, representing 70 per cent of the annual net estimates, compared to 53 per cent issued in a similar period of FY 2024/25,” the report stated.
Public debt repayment received the largest allocation at Ksh1.36 trillion, representing 72 per cent of approved estimates, compared to Ksh1.08 trillion issued in the previous financial year.
Pensions and gratuities rise
The report further shows pension and gratuity payments absorbed Ksh129.22 billion, representing 55 per cent of the approved annual estimates, up from Ksh115.14 billion recorded in the corresponding period last year.
Salaries, allowances and miscellaneous services under constitutional offices consumed Ksh2.80 billion, translating to 59 per cent absorption.
Nyakang’o noted that debt obligations continue to place significant pressure on government expenditure, with debt servicing consistently taking priority over other critical spending commitments.
Growing pressure on public finances
The latest figures paint a picture of a government increasingly directing resources toward fixed financial obligations, particularly debt repayment, leaving a shrinking fiscal space for development expenditure.
The report indicates Kenya’s public debt commitments remain one of the biggest burdens on the national budget as the Treasury balances repayment obligations, pension liabilities and recurrent expenditure amid growing calls for increased development spending and economic recovery measures.