Kenya’s chocking borrowing appetite as public debt hits Sh13trillion

Kenya’s public debt has crossed the Sh13 trillion mark, reaching Sh13.08 trillion by June 2026, intensifying scrutiny over the government’s borrowing strategy and the rising cost of servicing the country’s obligations.

The latest figure represents an increase of roughly Sh4.3 trillion from the about Sh8.7 trillion debt stock recorded when President William Ruto took office in 2022. The surge has raised concerns among fiscal watchdogs, political leaders and civil society groups over the sustainability, transparency and utilisation of borrowed funds.

The government continues to rely on borrowing to finance budget deficits, with China, Japan and international bond markets among the sources being pursued for additional financing.

The continued borrowing has fuelled calls for a shift away from what critics describe as a debt-driven approach to financing government operations and development.

Debt servicing is also consuming an increasingly significant share of government revenue, leaving fewer resources available for development programmes and essential public services.

Questions have additionally emerged over the transparency surrounding some borrowing arrangements, including whether Parliament received adequate information and approval for loans contracted by successive administrations.

Busia Senator Okiya Omtatah has taken the issue to court, challenging what he considers unconstitutional debt accumulated by successive governments.

His case invokes the controversial doctrine of odious debt, which argues that debts incurred by regimes without the consent of citizens and without benefiting the public should not necessarily become obligations of the people.

Omtatah has argued that Kenya borrowed Sh9.11 trillion between 2014 and 2024, but only Sh2.57 trillion received proper parliamentary approval, leaving Sh6.54 trillion that he characterises as “odious debt”.

“Fellow Kenyans, our crisis did not begin yesterday. The looting. The illegal debt. The betrayal of the Constitution. The collapse of public services. The silence of career politicians. These are old scripts repeated by leaders who believe Kenyans forget quickly,” Omtatah said.

The senator wants those responsible for allegedly unauthorised borrowing and loans that did not benefit Kenyans to bear the financial burden rather than transferring it to taxpayers.