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Originally published by The Standard Business
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July 21, 2026
9h ago

Domestic debt hits Sh862b on borrowing spree

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 revealed that Kenya's National Treasury has resorted to expensive domestic borrowing, significantly increasing debt servicing costs.

  • The country spent a staggering Sh861.7 billion on interest payments for domestic debt, accounting for 82 per cent of total debt-servicing costs in the year to June 2025.
  • This makes local debt more than three times as expensive as foreign borrowing.
  • The National Treasury bypassed Parliament to secure these costly loans.

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