NAIROBI, Kenya, Mar 31 – The National Treasury has dismissed claims of delayed Treasury bond interest payments, clarifying that all interest obligations for May and June 2025 were settled on time.
The clarification follows concerns raised by the Controller of Budget (CoB), which had flagged Sh53.56 billion as outstanding within the Exchequer system, sparking questions over possible delays in servicing domestic debt.
However, Treasury said the payments were not in arrears but had already been settled using the government’s overdraft facility at the Central Bank of Kenya.
“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 Treasury said in a statement.
It explained that while the amounts may have appeared outstanding within the Exchequer reporting framework, they had been duly financed and cleared through the overdraft facility.
The Treasury noted that the facility is a standard and lawful mechanism used to manage short-term cash flow needs and does not signal any failure to meet debt obligations.
It further pointed out that no bondholders or market participants reported any delays, reinforcing that payments were made as scheduled.
The clarification is expected to reassure investors, as Kenya continues to depend on the domestic debt market to finance budget deficits amid tight external financing conditions and rising debt servicing costs.
