Debt repayments now outpace healthcare spending in poorer nations

A new report shows that many lower-income countries now spend more on debt repayments than on healthcare. Kenya, for example, allocates nearly a third of its government revenue to external debt. This shift in spending priorities raises concerns about public services and social protection. In Kenya, 29% of government revenue goes towards external debt repayments. Only 9% is spent on health and 18% on education. The IMF has issued recommendations, with 73% focused on fiscal consolidation rather than expanding services.

Countries like Nigeria and Nepal face similar pressures to cut spending to meet debt obligations. The IMF’s advice to wealthier economies, such as the UK, contrasts sharply, as it encourages them to increase public spending. In Kenya, a small fraction of IMF recommendations support social protection or public services. Analysts warn that these policies could deepen shortages of teachers and nurses. Women are also hit hardest by the economic strain, bearing most of the costs of austerity. Three-quarters of lower-income countries now prioritise debt repayments over healthcare. This trend threatens essential services and risks widening inequality. The long-term impact on education and health systems remains a growing concern.