Kenya’s public debt has skyrocketed to KSh 11.02 trillion, driven by aggressive borrowing under President William Ruto’s administration over the past two years, according to recent data from the National Treasury.
Treasury Cabinet Secretary John Mbadi announced that his ministry is undertaking a comprehensive debt audit to ensure accountability for every shilling borrowed, amid growing concerns over the country’s fiscal sustainability.
The debt comprises KSh 5.09 trillion in external loans, with multilateral institutions such as the World Bank accounting for the majority, and KSh 5.93 trillion in domestic debt, primarily in Treasury bonds (83.3%) and Treasury bills (14.4%).
Mbadi attributed a slight reduction in external debt from KSh 6.09 trillion in December 2023 to the strengthening of the Kenyan shilling against the US dollar and other major currencies.
However, the overall debt burden continues to climb, with projections estimating it will reach KSh 13.2 trillion by the end of Ruto’s first term in 2027.
Mbadi emphasized the government’s commitment to transparency, stating, “We will account for every shilling that was borrowed.”
The Treasury plans to borrow an additional KSh 759 billion in the 2025/2026 financial year to finance a KSh 4.2 trillion budget, raising further concerns about debt sustainability.
Critics, including Busia Senator Okiya Omtatah, have demanded full accountability, with some alleging that loans have not been utilized for their intended purposes.
