The National Treasury has issued a response to reports on Treasury bond interest payments totaling Ksh 53.56 billion.
In a statement shared by former President William Ruto’s Senior Economic Adviser, David Ndii, on March 30, the treasury, through the Director General, Accounting Services, National Treasury, Bernard Ndungu, responded to a Controller of Budget report alleging Ksh 53.56 billion in delayed Treasury bond interest payments.
Controller of Budget Flags Delays in Settlement of Treasury Bond Interest Obligations
Kenya’s Controller of Budget, in a report presented to the National Assembly on March 30, flagged delays in the settlement of Treasury bond interest obligations amounting to KSh 53.56 billion.
The report linked the delays to cash-flow constraints stemming from high debt-servicing obligations, which continue to exert pressure on government finances.
According to the Controller of Budget, the delays affected payments due in May and June 2025 under domestic debt obligations during the 2024/2025 financial year.
The funding for the obligations was approved on July 15, 2025, with payments made on the same date, despite earlier due dates.
The Controller of Budget noted that such delays may affect exchequer releases to Ministries, Departments, and Agencies, with potential implications for service delivery.
Table 7: Delayed Call-up Settlement (Controller of Budget)
| Description | Due Date | Amount (KSh) | Date Paid |
| T. Bonds Interest Call-Up No.089/2024/2025 | 19/05/2025 | 11,975,820,340.00 | 15/07/2025 |
| T. Bonds Interest Call-Up No.092/2024/2025 | 09/06/2025 | 15,789,733,602.00 | 15/07/2025 |
| T. Bonds Interest Call-Up No.093/2024/2025 | 16/06/2025 | 25,789,733,602.00 | 15/07/2025 |
| Total | 53,555,287,544.00 |
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Treasury Explains Payment Mechanism
The National Treasury stated that the characterization of delayed payments is inaccurate and potentially misleading. It clarified that all obligations were settled on their due dates in May and June 2025.
“For the record, this characterization is inaccurate and potentially misleading,” the director general clarified.
According to the statement, the payments were executed through the government’s overdraft facility maintained at the Central Bank of Kenya, as part of established cash management and overdraft operational procedures.
The Treasury emphasized that the use of the overdraft facility is a standard liquidity management mechanism.
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It noted that the process is routinely applied within the operational framework of both the National Treasury and the Central Bank of Kenya.
Additionally, the director general indicated that any actual delay in settling the obligations would have triggered complaints or claims from bondholders and market participants. It stated that no such occurrences were recorded during the period in question.
“No such occurrences were recorded, affirming that all obligations were met in a timely manner,” he stated.
The Treasury further noted that presenting the payments as delayed does not reflect the actual cash management position, stating that such a presentation risks creating an inaccurate impression of non-compliance.
