Kenya is sinking deeper into a debt crisis, with new findings showing that seven out of every ten shillings collected by the government go toward debt repayment.
The Okoa Uchumi public debt report, released on Tuesday, paints a grim picture of an economy stretched to its limits. Kenya’s total public debt now stands at KSh11.81 trillion, with KSh6.3 trillion owed domestically and KSh5.48 trillion in external loans.
According to the report, domestic borrowing has overtaken foreign loans and is more vulnerable to misuse and corruption.
“Kenya is already in a debt crisis. Domestic debt has overtaken foreign debt and is more prone to misuse. With external debt, we can track the funds, but for domestic debt, we cannot,” said Alexander Riithi, head of programmes at The Institute for Social Accountability (TISA).
The report highlights how the growing debt burden has worsened inequality, with wealth increasingly concentrated among elite lenders.
Human rights groups are now urging the government to abolish supplementary budgets, reform the National Government Constituencies Development Fund (NG-CDF), and disclose all loan details, including creditors and repayment terms.
They also call for Kenya to stop borrowing from the World Bank and International Monetary Fund, arguing that such loans only perpetuate dependency.
“We need to get off the yoke of the World Bank and IMF. These institutions were created to rebuild Europe after the World War. How does that plan help Africa’s development?” said Saboti MP Caleb Amisi.
TISA Executive Director Diana Gichengo added, “Each supplementary budget widens the fiscal gap with expenditures we did not approve. NG-CDF must also be reformed.”
The report warns that without urgent reforms and transparent debt management, Kenya risks being trapped in a permanent cycle of borrowing and repayment, undermining essential services like education, healthcare, and job creation.
