Nairobi, Kenya — October 9, 2025. Kenya borrowed KSh95.5 billion in just four months, according to fresh data submitted by the National Treasury to Parliament.
The Treasury records show that between May 1 and August 31, 2025, the government signed four major loan agreements with a mix of commercial banks, bilateral partners, and multilateral institutions.
This translates to an average of KSh5.9 billion borrowed every week, or KSh23.9 billion per month, further deepening concerns over Kenya’s growing debt burden.
Foreign Currency Loans Raise Exchange Rate Risk
According to the Treasury’s report, a significant portion of the loans was contracted in foreign currencies, including the US dollar and the euro, leaving Kenya vulnerable to exchange rate fluctuations.
The report also outlines varying interest spreads and commitment fees, showing that the cost of borrowing depends heavily on the source of financing.
Public Debt Nears KSh12 Trillion
With the latest loan deals, Kenya’s public debt has edged closer to the KSh12 trillion mark — a new all-time high.
Economists have warned that the rising debt stock, coupled with the government’s increasing reliance on short-term domestic borrowing, could push the country into a debt-service trap.
“Kenya’s growing debt obligations are unsustainable in the long run. The government must shift focus toward fiscal consolidation and revenue efficiency,” said one economist familiar with the matter.
Mounting Pressure on Taxpayers
Experts have cautioned that the country’s elevated borrowing appetite will continue to strain taxpayers, many of whom are already grappling with high living costs, increased taxes, and slow economic growth.
The Treasury, however, maintains that all loans contracted are within the approved debt sustainability framework and are aimed at supporting budgetary and development needs.
