Kenya’s public debt surged to Ksh11.5 trillion by April 30, 2025, according to the latest data from the National Treasury. This marks a steady rise from Ksh11.36 trillion in March, with the government borrowing nearly Ksh100 billion each month in the lead-up to April.
The National Government Budget Implementation Review Report for the third quarter of the 2024/2025 financial year, released by Controller of Budget Margaret Nyakang’o, offers deeper insight into the country’s debt status.
Covering the period from July 1, 2024, to March 31, 2025, the report reveals that Ksh5.24 trillion, about 46 percent of the debt, is owed to external lenders. Domestic lenders hold a slightly larger share at Ksh6.12 trillion or 54 percent.
Compared to June 30, 2024, when the debt stood at Ksh10.58 trillion, the figures reflect a 7 percent growth in total public debt. This increase came largely from domestic borrowing, which jumped by 13 percent, fueled by intensified activity in the local market.
External debt rose by just 1 percent, bolstered by new disbursements amounting to Ksh194.05 billion from foreign commercial banks and Ksh126.28 billion from multilateral institutions.
Notably, supplier credit remained stagnant, with no new disbursements or repayments recorded in the first nine months of the fiscal year.
Govt Spends Ksh2 Trillion onPublic Debt Servicing
When it comes to servicing this mounting debt, the government allocated Ksh2.04 trillion in the 2024/2025 financial year, an overwhelming 89 percent of the Consolidated Fund Services (CFS) budget. This represents a significant jump from the Ksh1.87 trillion allocated the previous year, which included Ksh1.05 trillion for principal repayment and Ksh995.77 billion for interest.
This year, Ksh476.40 billion has been directed toward external debt principal payments and Ksh259.91 billion toward interest. Domestic debt servicing includes Ksh569.89 billion for principal and Ksh749.24 billion for interest.
Between July 2024 and March 2025, the government spent Ksh1.20 trillion on public debt servicing. This is slightly lower than the Ksh1.24 trillion (66 percent) spent during the same period the previous year.
The drop is largely due to reduced payments on external debt, which totaled Ksh465.48 billion compared to Ksh614.19 billion previously.
A detailed breakdown shows the government spent Ksh466.73 billion on external debt servicing – Ksh295.27 billion on principal and Ksh170.20 billion on interest. Ksh770.54 million went to commitment fees, Ksh2.80 million in penalties, and Ksh477.14 million in service fees.
For domestic debt, the government paid out Ksh729.45 billion, with Ksh186.85 billion going to principal and Ksh542.60 billion to interest.
