NAIROBI, Kenya – Kenyans are set to gain unprecedented clarity on the country’s public debt as the Office of the Auditor General (OAG) nears completion of a landmark audit.
This historic review, the first of its kind since Kenya’s Independence, promises to provide an in-depth breakdown of all government debt accumulated over the years.
The final report, which is expected by August 2025, will be a critical tool in assessing the sustainability of Kenya’s rising financial obligations, as public debt now surpasses the Sh11 trillion mark.
Challenges in Tracing Historical Debt Records
Deputy Auditor General Isaac Kamau, addressing the National Assembly’s Constitutional Implementation Oversight Committee last Thursday, revealed that while the audit was originally slated for completion by the end of the financial year, a few challenges have delayed the process.
The main hurdle has been the difficulty in tracing old documents necessary for the audit, particularly as the review spans the entire period since Independence.
“We are facing challenges in tracing some documents. Remember, we are auditing public debt from Independence, and that has brought some challenges,” Kamau explained.
The audit was initiated following a request by Parliament for a comprehensive review of the country’s debt portfolio, including scrutiny of the tax waivers granted over the years.
This move comes at a time when the public is becoming increasingly concerned about the sustainability of Kenya’s debt, especially as it continues to rise sharply.
Debt Levels and Economic Concerns
As of January 2025, the total public debt stood at Sh11.02 trillion, with domestic debt accounting for Sh5.93 trillion and external debt at Sh5.09 trillion.
This alarming rise in debt levels has sparked fears that Kenya may be heading toward a fiscal crisis.
National Treasury Cabinet Secretary John Mbadi emphasized that while Kenya’s debt is indeed substantial, the country is not at risk of default.
He explained that Kenya’s debt is carefully monitored by global financial institutions, such as the International Monetary Fund (IMF) and the World Bank.
However, the challenge remains with liquidity, as many loans are maturing between now and 2032, putting immense pressure on the country’s finances.
“Loans were taken at a particular point in time, and most of them are maturing between now and 2032. That is why we have the pressure,” Mbadi said.
Political and Legal Accountability
The growing public concern over Kenya’s borrowing has led to increased calls for accountability, with several political leaders and activists raising the alarm about the sustainability of the country’s debt.
Kiharu MP and budget expert Ndindi Nyoro has warned that Kenya risks joining Africa’s “debt defaulters club” if corrective measures are not implemented.
“Any indication that we are going to default or are unable to service our loans is more catastrophic to our economy,” Nyoro said during a recent budget review at the Institute of Public Finance.
Meanwhile, legal actions have been taken to demand accountability for Kenya’s mounting debt.
Busia Senator Okiya Omtatah, along with eight other petitioners, has filed a case in court seeking legal responsibility from former President Uhuru Kenyatta and senior officials for the country’s unchecked debt accumulation.
