Kenya's public debt has surged by Sh533 billion in the first quarter of the year, reaching a total stock of Sh12.83 trillion by the end of March.

• Total public debt increased from Sh12.29 trillion in December to Sh12.83 trillion in March.
• The National Treasury is increasingly relying on domestic borrowing, with domestic debt rising to Sh7.15 trillion.
• Controller of Budget Margaret Nyakang’o has previously warned against excessive reliance on new borrowing to repay existing debt.

Kenya's economy is expected to see steady but subdued growth of 4.6% in 2026, according to the European Bank for Reconstruction and Development (EBRD). However, rising energy costs and a high debt burden pose significant challenges to the outlook.

• Projected economic growth: 4.6% in 2026, rising to 4.9% in 2027.
• Key organization: European Bank for Reconstruction and Development (EBRD).
• Significant challenges: 70% public debt to GDP, 6.1% fiscal deficit, and re-emerging inflation at 4.4% in March 2026.

Kenyan consumers and businesses will continue to pay current electricity rates after the government withdrew a retail electricity tariff review application submitted by the Kenya Power and Lighting Company (KPLC).

• The withdrawal aims to protect consumers and businesses from higher energy costs and support economic growth.
• Energy and Petroleum Cabinet Secretary Opiyo Wandayi announced the decision following government consultations and stakeholder engagements.
• The current electricity tariff structure remains in place unless a new review follows the legal procedures outlined in the Energy Act, 2019.