Kenya’s growing debt burden is putting increasing pressure on the country’s finances, with EALA MP David Sankok warning that the size of the debt must be judged against the strength of the economy rather than viewed as a stand-alone figure.
Speaking during an interview with Radio Generation on Friday, Sankok said Kenya’s debt burden was considerably higher than that of several East African neighbours when measured against the size of their economies. He argued that countries with stronger economies could carry larger debts without facing the same pressure as nations with smaller economic bases.
His remarks come as Kenya’s public debt continues to climb. National Treasury figures show that total public and publicly guaranteed debt stood at Sh12.83 trillion at the end of March 2026, equivalent to 70.2 per cent of the country’s Gross Domestic Product (GDP).
Of this amount, domestic debt accounted for Sh7.15 trillion, while external debt stood at Sh5.68 trillion.
Treasury records show that Kenya’s public debt has risen steadily over the past five financial years. The debt stood at Sh7.70 trillion in 2020/21 before rising to Sh8.76 trillion in 2021/22 and Sh10.28 trillion in 2022/23.
It increased further to Sh10.58 trillion in 2023/24 and reached Sh11.81 trillion in 2024/25.
The Treasury projects total public debt to reach Sh12.65 trillion in 2025/26, with the debt-to-GDP ratio expected to stand at 65.6 per cent.
The government expects the ratio to fall gradually to 57 per cent by 2028/29 as it implements measures aimed at reducing the pressure on public finances.
Sankok said borrowing was not necessarily a problem if the money was directed towards projects that could strengthen the economy and generate returns.
“Debt also goes with the economy of the country. If you talk about the ratio, yes. If you talk about how much debt does America have, or Japan countries have? It is too much, but also the economy is also okay. So comparatively, yes, you must first of all know the strength of the economy before you know the debt.”
The legislator said the comparison between countries should therefore consider the size and strength of their economies rather than simply looking at the amount of money owed.
Kenya’s debt-to-GDP ratio remains above that of Uganda and Tanzania.
Uganda’s public debt reached 52.4 per cent of GDP in the 2024/25 financial year, according to the International Monetary Fund.
Tanzania’s public debt stood at about 49.9 per cent of GDP in 2024, with the IMF projecting a broadly moderate debt burden in the years that follow.
Burundi recorded a lower debt ratio, with the IMF estimating that its public debt fell from 53 per cent of GDP at the end of 2024 to 42 per cent at the end of 2025.
The decline was largely linked to strong growth in nominal GDP.
Rwanda, however, presents a different picture, with its public debt estimated at 73.6 per cent of GDP in 2025, putting it above Kenya’s ratio. The IMF projects Rwanda’s debt ratio to ease slightly to 73.1 per cent in 2026.
Sankok maintained that the key issue was not simply how much a country had borrowed, but what it had done with the money.
He said borrowing could help a country grow when funds were invested in areas that create economic activity, jobs and infrastructure capable of generating returns.
“Borrowing have no problem. But where the money is being used is where the problem is. If you borrow and invest wisely, of course you'll get the returns on investment.”
The cost of servicing Kenya’s debt has also emerged as a major pressure on government finances.
Treasury data shows that the government spent Sh1.72 trillion on domestic and external debt service during the 2024/25 financial year.
Domestic debt service accounted for Sh1.09 trillion, while Sh580.2 billion went towards servicing external debt.
Debt service during the financial year amounted to 71.2 per cent of government revenue, leaving a smaller share of public income available for development projects and other government services.
The pressure is further increased by continued budget deficits, which require the government to seek additional financing.
Sankok said Kenya should therefore look beyond the headline debt figure and focus on whether borrowed funds were being used to expand the productive capacity of the economy and generate enough returns.
He also maintained that comparisons with other countries should take into account differences in the size and strength of their economies instead of focusing only on the absolute amount of debt.
Kenya remains one of the more heavily indebted economies in East Africa, although Rwanda currently has a higher debt-to-GDP ratio.
For Kenya, the concern is not only the growing size of the debt stock but also the amount of government revenue being used to repay and service the debt, leaving fewer resources for development and essential public services.