Nderitu Mureithi, Chair of the Kenya Revenue Board, recommends that Kenya pause borrowing for 12 to 18 months to tackle the current debt crisis. During a radio interview on May 26, 2026, the former governor and economist highlighted that this strategy could effectively address the rising debt levels.
He referenced the 2002 debt-to-GDP ratio of 70%, slightly lower than today’s 71.6%, as reported by the IMF when former President Mwai Kibaki took office. At that time, most debt was short-term, involving Treasury bills lasting up to one year.
Mureithi emphasized, “We can pause borrowing. I firmly believe that now is the time to stop for 12 to 18 months.”
He noted that the government’s previous approach involved halting borrowing, allowing banks to lend to Kenyans and the private sector, which ultimately boosted tax revenues. This strategy led to a balanced budget by the end of 2004, with a surplus of Ksh1 billion.
Today, Kenya faces a staggering KSh13 trillion debt, including KSh7.55 trillion in external debt and KSh5.77 trillion in domestic debt. Mureithi believes that by adopting similar reforms, the nation can overcome its current debt challenges and restore financial stability.
