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Originally published by The Standard Business
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July 20, 2026
12h ago

Audit raises red flag as domestic debt hits Sh862b on borrowing spree

Audit raises red flag as domestic debt hits Sh862b on borrowing spree

The National Treasury departed from the approved Medium-Term Debt Management Strategy by significantly increasing domestic borrowing without parliamentary approval...

✨ Key Highlights

An Auditor General report has raised concerns as Kenya's National Treasury reportedly bypassed Parliament to access expensive domestic debt, leading to significant interest payments.

  • Sh861.7 billion spent on interest for local loans, representing 82 percent of total debt-servicing costs.
  • The National Treasury is the key organization involved in the borrowing.
  • Domestic debt servicing proved to be more than three times as expensive as foreign borrowing during the year to June 2025.

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