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Originally published by Capital Businessbusiness
March 31, 2026
3h ago
Kenya debt risk rises as Controller of Budget warns of ‘vicious cycle’
Appearing before Parliament, Nyakang’o said public debt had risen to Sh12.29 trillion as of December 2025, equivalent to 67.8 percent of GDP—well above the legal threshold. Kenya breaking news | Kenya news today |..
✨ Key Highlights
Kenya's fiscal stability is under threat as the Controller of Budget, Margaret Nyakang'o, warns of a deepening debt cycle fueled by expensive borrowing and poor project management. The nation's public debt has surged to Sh12.29 trillion, significantly exceeding the legal threshold.
- Public debt reached Sh12.29 trillion as of December 2025, equivalent to 67.8 percent of GDP.
- Key stakeholder: Controller of Budget Margaret Nyakang'o.
- A major concern is the increasing amount of debt servicing going towards interest payments rather than principal reduction, a situation described as "hazardous borrowing."
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