NAIROBI, Kenya – Kenya’s public debt has climbed to Sh11.81 trillion, equivalent to 67.8 percent of the country’s Gross Domestic Product (GDP), the National Treasury has disclosed.
Treasury Cabinet Secretary John Mbadi, speaking in Nairobi on Tuesday, said that in present value terms, the debt stands at 63.7 percent of GDP, a level he described as sustainable but with a heightened risk of distress.
According to the latest Treasury data, domestic debt accounts for Sh6.33 trillion, while external debt amounts to Sh5.48 trillion, owed to lenders such as the World Bank, African Development Bank (AfDB), China, and Eurobond investors.
During the 2024/25 fiscal year, Kenya paid Sh1.72 trillion in debt service—Sh1.14 trillion to domestic creditors and Sh579 billion to external lenders.
Mbadi said the Treasury is undertaking a series of reforms to ease pressure on the country’s debt position, including refinancing high-cost loans, extending repayment periods, and increasing reliance on concessional borrowing.
“Sound and prudent debt management remains the central pillar of my stewardship at the National Treasury,” Mbadi said. “We are committed to safeguarding essential public services, restoring fiscal space to spur growth, and fortifying Kenya’s economic sovereignty.”
Under the 2025 Medium-Term Debt Management Strategy, the government aims to lengthen the maturity of public debt, reduce exposure to exchange rate and interest rate risks, and ensure that 75 percent of future borrowing comes from domestic sources, with the remaining 25 percent from external lenders.
Mbadi said the Treasury expects Kenya’s debt burden to decline gradually over the medium term as ongoing fiscal discipline and structural reforms take effect.
He added that regular engagement with financial journalists would enhance transparency and public dialogue on fiscal policy.
The announcement comes amid growing concern over Kenya’s rising debt levels, which economists warn could crowd out spending on social services and development.
However, Mbadi maintained that the country’s debt remains under control and that borrowing continues to focus on productive, growth-supportive sectors.
