Kenya is spending nearly three-quarters of its revenue on debt repayment, leaving the government with little to run the country.
A new report by Okoa Uchumi, a public finance watchdog, has painted a bleak picture of Kenya’s economy—one where Ksh.7 out of every Ksh.10 collected goes to servicing debt. The findings have sparked growing concern among economists, human rights groups, and civil society organisations about the country’s financial future.
“Kenya is already in a debt crisis,” said Alexander Riithi, Head of Programmes at The Institute for Social Accountability (TISA). “Domestic debt has overtaken foreign debt and is more prone to misuse. With external debt, we can track the funds, but for domestic debt, we cannot.”
According to the report, Kenya’s total public debt now stands at Ksh.11.81 trillion—split between Ksh.6.3 trillion in domestic debt and Ksh.5.48 trillion in external borrowing. Analysts warn that this heavy domestic reliance is fuelling inequality, as interest payments primarily benefit wealthy lenders while burdening ordinary taxpayers.
A Nation Under Strain
The report describes a grim reality for millions of Kenyans struggling under the weight of an economy where jobs are scarce and essential services are under pressure. About 30 per cent of the population is unemployed, while corruption continues to cripple key sectors such as education and healthcare.
“We have an education system that hasn’t been tested,” Riithi added. “Kenyans are telling us the health sector has become a killing field, where you don’t know if you will survive tomorrow.”
Calls for Transparency and Reform
The report’s authors, alongside civic leaders and Members of Parliament, are calling for sweeping fiscal reforms to halt what they describe as a “vicious debt cycle.” Their recommendations include a ban on new loans from the World Bank and IMF, the abolition of supplementary budgets, and a full public disclosure of all existing loans and creditors.
“We need to get off the yoke of the World Bank and IMF,” said Saboti MP Caleb Amisi, who contributed to the report. “These institutions were created to rebuild Europe after the war. How does that plan help Africa’s development?”
Diana Gichengo, Executive Director of TISA, also urged the government to rein in off-budget spending.
“Every supplementary budget widens the fiscal gap,” she said. “It adds expenditures we never approved. The NG-CDF must also be reformed to ensure public funds serve citizens, not politics.”
A Warning for the Future
Economists fear that if current trends persist, Kenya could face a permanent debt trap—where borrowing only serves to pay off old loans.
For now, the message from Okoa Uchumi and its partners is clear: without immediate transparency, restraint, and accountability, Kenya risks mortgaging its future for the debts of its past.
About the Author
