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February 25, 2026
8h ago

Treasury defends high domestic borrowing amid debt warning

Treasury defends high domestic borrowing amid debt warning

Kenya will continue to rely heavily on domestic borrowing to finance its budget deficit..

✨ Key Highlights

The National Treasury is defending its strategy of high domestic borrowing to fund the budget deficit, despite warnings from Parliament that Kenya risks breaching its debt ceiling and hindering private sector credit.

  • The government plans to borrow approximately Sh 1.2 trillion domestically in the next financial year.
  • Principal Secretary Chris Kiptoo appeared before the National Assembly Public Debt and Privatisation Committee to explain the debt management strategy.
  • Lawmakers expressed concern that Kenya's public debt remains above the legal threshold of 55% of GDP.

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