Nairobi, March 4 -- Interest payments on the government's domestic debt fell below estimates by 11.5 percent or Sh54.04 billion in the six months to December 2025, reflecting the benefit accruing to the Exchequer from falling interest rates.

New data from the National Treasury's 2025-26 Supplementary Budget I shows that the domestic interest expenditure stood at Sh414.1 billion in the period, compared to the projected Sh468.14 billion in the June 2025 budget statement.

The decline was despite the country's stock of domestic public debt growing by Sh511.5 billion to Sh6.837 trillion between June and December 2025.

The Treasury's interest expense on external debt also fell below estimates by Sh9.66 billion to stand at Sh104.72 billion ag...