Kenya has moved to tighten control over its growing debt burden by giving the Auditor-General direct access to a live digital debt monitoring platform, in a move aimed at improving transparency and financial accountability across all levels of government.

The National Treasury is integrating the Commonwealth Meridian Debt Management System with IFMIS and the Central Bank of Kenya systems, allowing real-time tracking of national debt, repayments, and loan terms.

This integration means the Auditor-General, along with key government departments, will have instant visibility on when debts are taken, who is being paid, and under what conditions.

“The government is keen on sustaining transparency and improving efficiency on public debt service. To this end, the National Treasury is in the process of integrating the Commonwealth Meridian Debt Management System with IFMIS and the core banking systems of the Central Bank of Kenya,” said Treasury Cabinet Secretary John Mbadi.

The Meridian platform, developed by the Commonwealth Secretariat, is used by at least 41 countries—including Nigeria and Ghana—and supports informed decision-making on the cost of debt, sustainability, and risk management.

Kenya’s adoption comes amid growing public concern over the cost and management of national debt, with critics questioning the accuracy and openness of the debt register.

The country has come under fire for taking expensive loans from both local and external lenders without clear public disclosure.

Currently, debt records are handled by the Public Debt Management Office under the Treasury, with periodic updates released to the public.

The new setup will allow accounting officers across national and county governments, such as principal secretaries and county finance executives, to view debt data through IFMIS, which they already use for budgeting, procurement, and payments.

The integration will make it easier for officials to track disbursements, monitor debt terms, and ensure loans align with good financial practice. It is also expected to cut delays and boost real-time decision-making.

Concerns over Kenya’s debt practices have mounted in recent years, especially regarding concessional loans. In February 2024, Controller of Budget Margaret Nyakang’o told the National Assembly’s Public Debt and Privatisation Committee that such loans were not always as cheap as assumed.

“Our analysis has revealed that the average interest paid on concessional loans has averaged 14.5 per cent for many years, which is not cheap by any standards. Most of the so-called concessional loans might be very expensive in the long run and with a low impact in terms of economic development,” Nyakang’o said.

The new digital system is expected to give the Auditor-General and other oversight bodies the tools to flag questionable loans early and assess the long-term impact of Kenya’s borrowing decisions.

As of March 2025, Kenya’s public debt stood at Sh11.36 trillion—up from Sh10.58 trillion in June 2024. Over the nine months to March, the country spent Sh1.2 trillion servicing debt, with domestic loans making up over 60 percent or Sh729.45 billion of that amount.