NAIROBI, Kenya – The government has taken a major step toward financial accountability by giving the Auditor General real-time access to the country’s borrowing and repayment records through a new digital debt tracking platform.
The Treasury has begun integrating the Commonwealth Meridian Debt Management System with the Integrated Financial Management Information System (IFMIS) and the Central Bank of Kenya’s (CBK) core banking systems—creating a live, centralised dashboard of the country’s entire debt portfolio.
The move is expected to enhance transparency, reduce corruption risks, and improve fiscal decision-making across national and county governments.
“The government is keen on sustaining transparency and improving efficiency in public debt service,” said Treasury Cabinet Secretary John Mbadi. “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.”
A global tool, local urgency
Developed by the Commonwealth Secretariat, the Meridian system is designed to help governments manage public debt in real time—allowing for closer monitoring of borrowing costs, debt sustainability, and risk exposure.
By 2023, at least 41 countries, including Nigeria and Ghana, had already adopted the tool.
Kenya’s rollout comes amid heightened pressure for public scrutiny of national borrowing, as concerns mount over opaque debt deals and the soaring cost of servicing loans.
For years, critics have faulted the Treasury for limiting access to comprehensive debt data, often relying on delayed or summary reports from the Public Debt Management Office.
The new system will break that barrier by offering live access to debt information for accounting officers across all levels of government.
Officials such as principal secretaries, state agency heads, and county finance chiefs—who already use IFMIS for budgeting and procurement—will now be able to view details on loan disbursements, payment schedules, and contractual terms as they happen.
Debt at a Glance
The shift comes as Kenya’s debt burden continues to grow.
As of March 2025, public debt had climbed to Sh11.36 trillion, up from Sh10.58 trillion in June the previous year.
Over the nine months to March, the government spent Sh1.2 trillion on debt repayments, with domestic loans accounting for Sh729.45 billion, or over 60% of the total.
Transparency concerns have been particularly sharp around so-called concessional loans—traditionally viewed as cheaper, low-interest funding options from development partners.
But that view has come under fire. Controller of Budget Margaret Nyakang’o, speaking before Parliament’s Public Debt and Privatisation Committee in 2024, warned that many concessional loans may be far more expensive than reported.
“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,” Nyakang’o told lawmakers. “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.”
What changes now?
Treasury officials believe the Meridian system will be a game-changer—giving public institutions better visibility into the structure, cost, and terms of debt, while enforcing real-time accountability in how funds are managed and repaid.
The move is also expected to reinforce recent efforts by the government to slow down borrowing, particularly after public backlash from younger generations over debt-driven budgets.
