Kenya's mounting debt servicing costs are exposing the nation to significant exchange rate risks, according to the Controller of Budget. The country has spent over Sh1.35 trillion on debt repayments in the first nine months of the 2025/26 financial year.

• Over Sh1.35 trillion spent on debt servicing (Sh763.21 billion domestic, Sh588.85 billion external) by March 2026.
• The Controller of Budget issued the warning.
• 52 percent of Kenya's external debt is in US dollars, making the shilling's weakening costly.

Kenya's public debt has surged by 9 per cent to Sh12.82 trillion as of March 31, 2026, exceeding Parliament's recommended debt threshold. This increase highlights mounting fiscal pressures on the government.

• The total public debt reached Sh12.82 trillion, up from Sh11.8 trillion in June 2025.
• The Controller of Budget (CoB) released the report detailing the debt increase.
• Domestic debt saw a 13 per cent rise, while external debt grew by 4 per cent.

The Controller of Budget (CoB) has reported that nearly half of Kenya's government revenue during the first nine months of the 2025/26 financial year was allocated to servicing public debt, amounting to Sh1.35 trillion.

• Debt repayments constituted nearly 87 percent of the Consolidated Fund Services (CFS) expenditure, which totaled Sh1.55 trillion.
• The country's public debt stock has climbed to Sh12.82 trillion, 69.9 percent of GDP, significantly exceeding Parliament’s recommended threshold of 55 percent.
• The report also highlights persistent challenges with Sh465.87 billion in pending bills, impacting service delivery and project implementation.

The Kenya Revenue Authority (KRA) is preparing to pursue employers who have failed to remit over Sh100 billion in employee deductions for the Affordable Housing Levy.

• Estimated Sh100 billion in unremitted Affordable Housing Levy.
• The KRA and the State Department for Housing are involved in this enforcement push.
• Parliament is being asked to amend the Finance Bill, 2026, to empower the KRA to recover these funds as a civil debt.