NAIROBI, Kenya — Treasury Cabinet Secretary John Mbadi has warned of rising pressure on the country’s finances due to growing public debt, urging for more prudent spending and strategic fiscal planning.
Speaking while presenting the 2025/26 budget estimates in the National Assembly, Mbadi highlighted the narrowing fiscal space caused by continued debt accumulation, stressing the need for responsible borrowing and a shift toward long-term financial sustainability.
“We face constraints on account of public debt accumulation. Progressively, our debt-carrying capacity has narrowed,” Mbadi told Parliament. “This calls for prudence and discipline on how we manage and take on new debt.”
The CS acknowledged the government’s challenge in mobilizing higher tax revenues while balancing the need to keep the cost of doing business low to stimulate economic growth.
He pointed out that these two issues are interconnected and must be addressed through a multi-pronged approach.
“We must balance the need for increased revenues with the need to keep the cost of doing business low to stimulate economic growth,” he added.
“These constraints are interlinked and addressing them strategically requires fiscal discipline and a commitment to long-term sustainability.”
Mbadi’s remarks come as the government seeks to stabilize its finances, manage debt obligations, and accelerate economic recovery in the face of public pressure over the high cost of living and calls for greater accountability in public spending.
