Kenya's public debt has surged to Sh12.29 trillion as of December 31, 2025, marking a 4% increase from the previous six months, according to a report by the Controller of Budget.

• The total public debt stock reached Sh12.29 trillion, with Sh6.82 trillion from domestic lenders and Sh5.46 trillion from external lenders.
• This debt level represents 67.8% of the national GDP, exceeding Parliament's approved threshold of 55%.
• Controller of Budget Margaret Nyakang’o highlighted that the increase is attributed to the national government borrowing to finance budget deficits and cover interest on previous debts.
• The report also noted challenges in budget implementation, including incomplete automation of procurement processes and low absorption of the development budget.