Treasury Cabinet Secretary Hon. John Mbadi today disclosed that Kenya’s public debt reached Ksh 11.81 trillion as of June 2025, equivalent to 67.8 percent of the country’s GDP.
Speaking to financial journalists, Mbadi clarified that in present value terms, the debt is 63.7 percent of GDP, a level deemed sustainable but with a heightened risk of distress.
The debt comprises Ksh 6.33 trillion in domestic obligations and Ksh 5.48 trillion in external debt owed to creditors such as the World Bank, African Development Bank, China, and Eurobond holders.
In the 2024/25 fiscal year, the government spent Ksh 1.72 trillion on debt servicing, with Ksh 1.14 trillion paid to domestic lenders and Ksh 579 billion to external creditors.
To address debt vulnerabilities, Mbadi outlined ongoing liability management strategies, including refinancing high-cost debts, extending debt maturities, and prioritizing concessional financing to enhance sustainability.
Mbadi emphasized that prudent debt management is a cornerstone of his tenure at the National Treasury. “Our focus is on safeguarding public services, restoring fiscal space for growth, and strengthening Kenya’s economic sovereignty,” he said.
The 2025 Medium-Term Debt Management Strategy aims to reduce exposure to interest rate and exchange rate risks, with 75 percent of borrowing planned from domestic markets and 25 percent from external sources.
This approach seeks to promote intergenerational equity and lengthen debt maturity profiles.
The CS projected a gradual decline in the debt-to-GDP ratio over the medium term through fiscal discipline and structural reforms.
To boost transparency, Mbadi announced monthly briefings with financial journalists to foster informed public discourse on Kenya’s economic trajectory.
These measures, he noted, will support sustainable debt management and economic resilience.