Kenya’s debt load continued to grow sharply in recent months, with new Treasury data revealing that the government borrowed an average of Sh5.9 billion every week between May and August this year.
The figures, presented to the National Assembly on Tuesday, show that the country accumulated a total of Sh95.5 billion in new loans within four months, mainly to fill budget shortfalls and offset slow revenue inflows.
Treasury records show the loans were drawn from multilateral, bilateral, and commercial lenders, supporting different state-funded projects. This means the government was taking on Sh23.9 billion monthly, equivalent to Sh795.8 million per day and Sh532.4 million every hour.
“One loan facility and one bond issuance from the previous period are reflected in the current report having been recorded in the commonwealth meridian system after a close of the reporting period,” Treasury’s report stated.
The new borrowing report has reignited concerns about Kenya’s fiscal discipline, with warnings that the country has already gone beyond its legally approved debt ceiling. Economists caution that exceeding the limit could expose the economy to heavy repayment risks while squeezing funds meant for development.
Treasury Cabinet Secretary John Mbadi said Kenya’s public debt had reached Sh11.81 trillion by June 2025, accounting for 67.8 percent of the GDP. He said the debt, measured in present value terms, stood at 63.7 percent of GDP — a level he maintained is still manageable though risky.
The Public Finance Management law caps public debt at 55 percent of GDP, and requires that any borrowing beyond that must be approved by Parliament. Treasury documents now confirm the limit has been breached.
Opposition figures and financial experts have urged immediate policy action to slow down borrowing, warning that continued accumulation of debt could trigger a fiscal crisis. Kiharu MP Ndindi Nyoro was among those who sounded the alarm last month, saying Kenya risks “dire economic consequences” if borrowing continues unchecked.
As required by Section 31(3) of the Public Finance Management Act, the Treasury submitted the report detailing all loan transactions, including amounts borrowed, repayment terms, interest rates, and the identities of lenders.
The report also confirmed the issuance of a Sh62 billion international sovereign bond on April 30, 2025, by CitiGroup Global Markets Europe AG, intended to support the 2025–26 budget and liability management operations.