SRC, CBK, and KAM Reports Flag Fiscal Pressures and Economic Risks in Kenya - September 2025

Several reports have highlighted significant fiscal and economic challenges within Kenya. The Salaries and Remuneration Commission (SRC) released new data showing that national and county governments are consistently breaching the 35% wage bill cap, with personnel costs crowding out development spending. In the financial sector, a Central Bank of Kenya (CBK) stress test revealed that Kenyan banks face significant risks from rising non-performing loans (NPLs) and cyber-attacks, with smaller lenders being particularly impacted. Separately, the Kenya Association of Manufacturers (KAM) stated that the country's manufacturing sector is under severe pressure from a flood of cheap imports and counterfeits. According to KAM, these illicit trade practices are eroding the competitiveness of local industries and forcing some businesses to shut down or relocate.