According to Omtatah, the projected budget stands at Ksh 4.82 trillion, out of which taxpayers will be required to allocate approximately Ksh 2.3 trillion to meet debt obligations.
He further noted that a significant portion of the debt expenditure will go towards interest payments alone, estimating that about Ksh 1.3 trillion will be used solely to service loan interest before any meaningful development projects are financed.
The senator warned that the rising cost of debt repayment is increasingly limiting the government’s ability to invest in critical sectors such as infrastructure, healthcare, education, and job creation.
Omtatah argued that the situation reflects a broader fiscal challenge facing the country, where borrowing has continued to grow faster than revenue generation, placing additional pressure on taxpayers.
He expressed concern that the heavy debt servicing obligations could leave limited fiscal space for development priorities, potentially slowing down economic growth and worsening the cost of living for ordinary Kenyans.
The senator has in recent years consistently warned about the country’s debt trajectory, calling for greater transparency and accountability in public borrowing and expenditure decisions.
His latest remarks come at a time when debates over Kenya’s public debt levels have intensified, with economic experts and policy analysts also questioning the sustainability of the current borrowing patterns.
According to fiscal projections, Kenya’s budget allocations have increasingly tilted towards recurrent expenditure, with debt servicing consuming a growing share of national resources compared to development spending.
Omtatah cautioned that unless urgent reforms are implemented, the country risks entering a cycle where new borrowing is used primarily to service existing debt, leaving little room for long-term investment in development projects.
He called for more prudent financial management, including stricter controls on public borrowing, enhanced oversight of loan agreements, and improved revenue collection mechanisms to reduce reliance on external debt.