Kenya is grappling with a soaring debt burden and its impact on the nation’s ability to fund essential services, sparking a debate on necessary fiscal adjustments. As debt servicing costs consume a significant portion of its revenue, the country faces tough choices in prioritizing public spending.

• Kenya’s foreign debt stands at KSh 11.5 trillion, with a debt-to-GDP ratio of approximately 66.8%.
• Debt servicing for the current year is about KSh 1.8 billion, representing approximately 67.1% of the country’s revenue, well above the IMF’s recommended threshold of 30%.
• This month, the government will spend KSh 68.7 billion on external debt repayments, significantly impacting official forex reserves.
• Payments to China for the Standard Gauge Railway (SGR) loans contracted in 2014 and 2015 amounted to KSh 55.8 billion in July, accounting for 81.3% of total external debt service for that month.