Ruto's Sh906b local borrowing plan threatens private credit

Analysts say heavy domestic borrowing could cause high interest rates...

✨ Key Highlights

President William Ruto's government plans to borrow a substantial Sh906 billion from the domestic market within a single year. This move is raising concerns among analysts and banking sources that it could crowd out the private sector and reverse recent gains in lower loan costs.

The government's Medium-Term Debt Management Strategy (MTDS) for 2026/27–2028/29 mandates that 82 per cent of all new gross borrowing must come from Kenyan financial institutions and pension funds.
This strategy prioritizes the state's fiscal needs, potentially at the expense of market stability and access to credit for private businesses.
The plan details were published this month and reviewed by The Standard.

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