Kenya Projects KSh 901Bn in New Debt, 65% from Domestic Sources
Kenya targets KSh 613.5B from the domestic market and KSh 287.4B externally in FY2025/26 under the Annual Borrowing Plan...
✨ Key Highlights
Kenya plans to raise KSh 901 billion in new debt for the upcoming fiscal year, with the majority, 72%, sourced from the domestic market. This strategy aims to reduce refinancing and exchange rate risks, aligning with the 2025 Medium-Term Debt Management Strategy.
- Total net borrowing is estimated at KSh 901 billion, with KSh 613.5 billion from domestic sources and KSh 287.4 billion externally.
- The National Treasury projects gross financing needs of KSh 1.55 trillion, including KSh 901 billion for the fiscal deficit.
- Domestic borrowing will primarily involve Treasury bonds with a net issuance target of KSh 634.8 billion, complemented by KSh 149 billion from privatization proceeds.
- Kenya's total public debt stood at KSh 11.8 trillion as of June 2025, equivalent to 67.8% of GDP.
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Kenya Announces Public Finance, Debt, and Revenue Measures - September 2025
United Bank for Africa (UBA) has committed $150 million (Sh20.5 billion) to Kenya’s Roads Levy Securitisation Programme, boosting a Sh175 billion plan to revive over 580 stalled road projects. Separately, Kenya plans to raise KSh 901 billion in new debt for the upcoming fiscal year, with 72% of it to be sourced from the domestic market. This strategy aligns with the 2025 Medium-Term Debt Management Strategy to reduce refinancing and exchange rate risks. Additionally, Tourism Cabinet Secretary Rebecca Miano defended a proposed increase in national park entry fees. The Kenya Wildlife Service (KWS) aims to use these revisions, the first in nearly two decades, to close a Sh12 billion annual funding deficit and cover rising maintenance costs.
