Kenya Borrowed Sh1.1 trillion In The Last Year – Comptroller of Budget
Kenya’s national debt has reached Sh11.7 trillion, with the National Treasury borrowing more than Sh1.1 trillion in the previous fiscal year, according to Controller of Budget Magret Nyakang’o.
In her report to the National Assembly Committee Public Debt and Privatisation Committee, Nyakang’o stated that the debt portfolio increased from Sh10.6 trillion in 2023/24 to Sh11.7 trillion in 2024/25.
“Kenya’s total gross public debt stock for 2024/25 is estimated at Sh11.7 trillion (67.8 per cent of GDP), an increase from Sh10.6 trillion (66.9 per cent of GDP) in 2023/24, driven by fiscal deficits and currency depreciation pressures, though fiscal consolidation efforts are projected to moderate growth,” Nyakang’o said.
Domestic debt totals Sh6.3 trillion (54%), with external debt totaling Sh5.4 trillion (46%).
“Domestic debt has grown nominally from Sh5.4 billion in FY2023/24, reflecting an increased reliance on Treasury bonds and bills. Meanwhile, external debt rose from Sh5.2 trillion due to multilateral inflows.”
According to the CoB, Kenya’s total public debt service (redemptions plus interest and other charges) for the current fiscal year is Sh1.6 trillion.
This marks a huge increase from prior years, taking more than 70% of routine revenue.
Domestic interest payments accounted for Sh699.5 billion (including Sh678.3 billion in Treasury bonds and bills held by commercial banks and non-banks), while external debt servicing totaled Sh540.1 billion.
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This includes Sh332.7 billion in principal repayments and Sh205.3 billion in interest and fees.
Nyakang’o was testifying before the Committee on Public Debt and Privatisation to present her thoughts on the Annual Public Debt Management Report for Fiscal Year 2024-25.
According to the research, the stock of government-guaranteed debt remains large, with most exposure concentrated in State-Owned Enterprises (SOEs) such as Kenya Airways, KenGen, and the Kenya Ports Authority.
The controller says the country also faces a negative economic impact as debt hampers local economic growth, as suppliers and small businesses struggle with cash flow issues.
Kenya Borrowed Sh1.1 trillion In The Last Year – Comptroller of Budget
