With Kenya’s public debt crossing the Sh11 trillion threshold, a local think tank is calling for more rigorous parliamentary oversight to bolster transparency and accountability in the borrowing process.

The Institute of Public Finance (IPF) argues that the National Assembly should play a more active role in scrutinizing and approving loan agreements before they are signed by the National Treasury or executive arm of government.

As of April 30, Kenya’s nominal debt had surged to Sh11.5 trillion roughly 68 percent of the country’s GDP, far surpassing the 55 percent debt sustainability benchmark. Bernard Njiri, IPF’s Senior Research Analyst for Macroeconomics and Public Debt, emphasized that early parliamentary involvement would help make loan terms public and reduce secrecy in government borrowing.

“It's not just about the size of the debt. The real issue is whether it’s delivering value,” said Njiri during a media roundtable on debt and tax transparency. “Are Kenyans seeing the returns? Do they even know what deals are being made on their behalf?”

Under the Public Finance Management Act, ministries are allowed to borrow once Parliament approves the medium-term debt strategy and the annual borrowing plan. However, once that framework is in place, the Treasury Cabinet Secretary only needs to submit periodic reports — a process IPF says leaves room for opaque agreements and weakens accountability.

Njiri urged lawmakers to be granted the mandate to ratify individual loan deals, saying this would prevent the kind of secrecy that surrounded the Standard Gauge Railway loan, whose critical details remain hidden from the public. He also pointed out the inefficiencies in borrowing, such as commitment fees being paid on loans that remain undisbursed due to stalled projects.

“Why rush to sign a loan before a project is even approved or ready for rollout?” he asked.

The think tank also flagged inconsistencies in debt reporting by the Public Debt Management Office (PDMO). Njiri criticized the lack of accessible data, noting that some reports are published in formats that are difficult to read or interpret. He added that disparities between figures from the National Treasury and those from the Central Bank only fuel public mistrust.

Kenya’s lack of timely and transparent debt reporting has not gone unnoticed globally. The World Bank has ranked the country poorly on debt transparency due to irregular updates on newly contracted external loans.

IPF is also pushing for full disclosure of the country’s top domestic lenders. Njiri noted that commercial banks have become significant beneficiaries of government borrowing, with nearly half of their profits in 2024 coming from interest on government securities.