The The National Treasury of Kenya has confirmed that Treasury Bond interest obligations amounting to KSh 53.56 billion for May and June 2025 were fully settled, seeking to clarify concerns raised in recent public finance reporting.
In a press statement dated March 31, 2026, Principal Secretary Chris Kiptoo stated that “all Treasury Bond interest obligations for the stated period were settled in full and on time, in accordance with the Government’s debt servicing schedule.”
The clarification follows observations in a report by the Controller of Budget, which indicated that the amounts appeared outstanding within the Exchequer reporting framework. However, the Treasury explained that “while the amounts may have appeared outstanding within the Exchequer reporting framework, they were duly financed and settled through the Government overdraft facility at the Central Bank of Kenya.”
The statement emphasised that the utilisation of the overdraft facility is “a standard and lawful mechanism for managing short term liquidity within Government operations,” and is aligned with established cash and liquidity management practices.
Addressing concerns about potential defaults, the Treasury noted that “at no point were these obligations in arrears,” adding that “no claims, complaints, or disruptions were recorded from bondholders or market participants.”
The Government reiterated its commitment to fiscal discipline, with Kiptoo affirming that the Treasury “remains committed to prudent public financial management, transparency, and the timely honouring of all Government obligations.”
