The National Treasury has defended Kenya’s economic performance, debt management strategy and public finance accountability measures, assuring lawmakers that the country remains resilient despite global economic uncertainties and domestic challenges.
In a detailed response presented to the Senate on Wednesday, Treasury Cabinet Secretary John Mbadi said Kenya’s economy continued to post positive growth across various sectors, even as it faced the effects of geopolitical tensions and climate-related disruptions.
“Against this global backdrop, the Kenyan economy continues to demonstrate resilience despite facing elevated external risks,” Mbadi told senators.
According to the Treasury, the economy expanded by 4.6 per cent in 2025, slightly lower than the 4.7 per cent growth recorded in 2024.
The Cabinet Secretary attributed the slowdown to external shocks, including the conflict in the Middle East, which affected global commodity markets, investor confidence and financial conditions.
Mbadi was responding to a series of questions raised by senators, including Tom Ojienda, who sought clarification on measures being taken to address slowed economic growth and the country’s public debt burden.
On the debt position, the Treasury disclosed that Kenya’s public and publicly guaranteed debt stood at approximately Sh12.842 trillion as of February 26, 2026. The amount represents 69.49 per cent of the country’s Gross Domestic Product (GDP).
The Cabinet Secretary said domestic borrowing accounted for Sh7.063 trillion of the total debt stock, while external debt stood at Sh5.779 trillion.
He further noted that multilateral institutions remained Kenya’s largest source of external financing, followed by commercial lenders and bilateral creditors.
The Treasury also highlighted progress achieved under the implementation of Kenya’s Vision 2030 development blueprint, citing investments in education, healthcare, housing, water access and social protection programmes.
According to Mbadi, the government has expanded educational opportunities through the construction of hundreds of secondary schools and the continued rollout of the Competency-Based Curriculum (CBC).
“In the health sector, reforms were implemented to advance Universal Health Coverage,” he said.
The Cabinet Secretary pointed to the transition from the National Hospital Insurance Fund (NHIF) to the Social Health Authority (SHA), as well as the expansion of community health services, as key milestones in the healthcare sector.
He added that affordable housing projects, devolution funding and social protection initiatives had improved access to essential services while promoting social inclusion across the country.
“Another important achievement of Kenya Vision 2030 has been the expansion of equity and inclusion through devolution, social protection, education, health, water, housing and digital connectivity,” Mbadi said.
On public procurement, the Treasury said reforms undertaken through the Public Finance Management Act and related regulations had strengthened electronic procurement systems in both national and county governments.
The ministry said the measures were intended to improve transparency, efficiency and accountability in the use of public resources.
Responding to concerns raised by nominated Senator Hamida Kibwana regarding audit queries highlighted by the Auditor-General, Mbadi said existing constitutional and legal frameworks provide mechanisms for tracking, reviewing and resolving audit concerns.
He assured senators that the government continues to strengthen oversight and accountability systems to ensure ministries, departments and agencies take corrective action where necessary, as part of broader efforts to enhance public financial management.