
Dr. Margaret Nyakang’o, the Controller of Budget, has expressed serious concerns regarding the government’s escalating borrowing, which has driven public debt beyond the approved ceiling of 55% of Gross Domestic Product (GDP).
The current debt level stands at 67% of GDP, as highlighted in the National Government Budget Implementation Review Report for the first quarter of the 2024/2025 financial year, covering July 1 to September 30.
Nyakang’o revealed that approximately 70% of tax revenue is allocated to debt servicing, with repayments prioritized above all other expenditures. This alarming trend prompted a directive from Mugambi, who has demanded that the state provide, within 45 days, comprehensive details of all debt agreements, information on sovereign bonds, and a breakdown of how borrowed funds have been spent.
The situation is compounded by concerns over Kenya’s “odious” debt, which lacks clear links to specific projects. Despite President William Ruto’s earlier promises to reduce the debt burden, the country has witnessed a steady increase in borrowing since he took office just over two years ago. The rising debt levels pose significant challenges for the nation’s economic stability and fiscal health.