Kenya’s rising debt costs are being driven, in part, by frequent public protests, Treasury Cabinet Secretary John Mbadi has said, noting that disruptions to economic activity affect the country’s ability to repay loans.
Speaking on Tuesday, February 3, Mbadi said that mass demonstrations not only slow down business operations but also limit the government’s revenue collection, forcing it to borrow more at higher interest rates.
“I am not against picketing, but let us not disrupt economic activities. It is costly, expensive, and one of the reasons we pay high debts,” he said.
The Treasury chief added that even a single day of protests can take the economy months to recover, raising concerns among global financial institutions. He said major lenders like the World Bank and the International Monetary Fund often assume that the losses caused by such disruptions could set Kenya back by up to three years.
“Today, I am struggling with the World Bank to justify and demonstrate that our debt sustainability is still within limits because they don't see it in their economic projections.
“Sometimes they project the economy to pick up in three years, but I convince them that it would recover within months,” Mbadi explained.
The Cabinet Secretary pointed out that Kenya is still managing the aftermath of the widespread protests in 2023, 2024, and 2025, which he said slowed economic growth. He encouraged citizens unhappy with the government to explore other ways of voicing concerns that do not interfere with economic activity.
Mbadi’s comments come after Nairobi’s transport system was paralysed during a recent matatu strike, leaving thousands of commuters stranded and forcing several businesses in the Central Business District and surrounding areas to close or scale down operations.
The warning coincides with the United Opposition threatening street protests if authorities do not address their grievances following the attack at Witima Church.
