E.Africa to spend $23 billion on debt servicing

Mwigulu pic

Tanzania's Finance minister Mwigulu Nchemba presents the country's 2025/26 Budget in Parliament in Dodoma on June 12, 2025. PHOTO | EDWIN MJWAHUZI

Dar es Salaam. A mounting debt burden across East Africa is increasingly weighing on public finances, with new data showing that citizens in Tanzania, Kenya and Uganda will collectively shoulder debt servicing costs of around Tsh60 trillion (about $23 billion) in the upcoming 2025/26 fiscal year.

The ballooning repayments by the three founding members of the East African Community (EAC) are significantly limiting fiscal space for critical investments in social services, infrastructure and employment creation.