Nairobi — The National Treasury has dismissed claims of delayed Treasury bond interest payments, affirming that all obligations for May and June 2025 were fully settled and paid on time.

In a statement issued Tuesday, the Treasury said the payments--amounting to Sh 53.56 billion--were honored in line with the government's debt servicing schedule, despite concerns raised in a recent report by the Controller of Budget.

The Ministry clarified that while the payments may have appeared outstanding within the Exchequer reporting framework, they were duly financed and settled through the government's overdraft facility at the Central Bank of Kenya (CBK).

"The utilisation of the overdraft facility is a standard and lawful mechanism for managing short-term liquidity within government operations," the Treasury said, noting that the approach is consistent with established cash management practices.

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The Treasury emphasized that at no point were the obligations in arrears, adding that no complaints or disruptions were reported by bondholders or market participants.

This, the Ministry said, confirms that all payments were effected as they fell due, maintaining confidence in Kenya's domestic debt market.

The clarification comes amid heightened scrutiny of public finances and debt servicing, with the government reiterating its commitment to prudent financial management, transparency, and timely settlement of obligations.

Principal Secretary to the Treasury, Dr. Chris Kiptoo, said the government remains focused on upholding fiscal discipline and ensuring continued stability in financial markets.

The statement is expected to reassure investors and stakeholders following concerns over the reporting of public debt obligations and liquidity management.