Kenya's Controller of Budget Margaret Nyakang’o has issued a severe warning regarding the nation's escalating public debt, which hit Sh11.73 trillion by June 2025. This rapid increase, driven by aggressive borrowing under President William Ruto’s administration, has significantly deviated from the government’s borrowing policy and raises serious concerns about fiscal sustainability.

• Total Public Debt: Sh11.73 trillion by June 2025, increasing by approximately Sh3 trillion since June 2022.
• Key Person: Margaret Nyakang’o, Controller of Budget.
• Debt Composition: Domestic debt is Sh6.33 trillion (54%), exceeding external debt, breaching the 50:50 medium-term strategy.
• Debt Servicing Burden: Sh1.59 trillion consumed in FY 2024-25, representing 91% of the allocated budget for public debt.
• Recent Rating Upgrade: S&P upgraded Kenya's long-term sovereign credit rating to ‘B’ from ‘B-’ in August 2025, citing reduced near-term external liquidity risks.