KENYA · PUBLIC DEBT
Key Facts
- —What is happening Kenya’s public debt, the total its national government owes at home and abroad, stood at a provisional Sh13.48 trillion (about US$104 billion) at the end of August 2026, in figures published on Friday, 23 October.
- —Why it matters Bigger debt means bigger repayments and more borrowing pressure as Kenya heads to a general election on Tuesday, 10 August 2027 while it also seeks a new International Monetary Fund (IMF) programme.
- —The numbers Domestic debt is Sh7.68 trillion (US$59.1 billion) and external debt is US$44.8 billion (Sh5.80 trillion); total debt rose Sh246 billion (US$1.9 billion) in August and 9.6% since December 2025.
- —Who is who The National Treasury is Kenya’s finance ministry and manages government borrowing, while President William Ruto leads the government that must face voters in August 2027.
- —What to watch Watch the next central bank debt update, whether Kenya agrees a new IMF programme (no start date has been announced), and the general election on Tuesday, 10 August 2027.
- —What it means for you US holders of Kenyan dollar bonds, called Eurobonds, face a government debt load that grew again in August, while the shilling stayed steady near Sh130 per US$ and travellers see no new rules.
Kenya’s public debt reached a provisional Sh13.48 trillion (about US$104 billion) at the end of August 2026. It has grown 9.6% since December 2025, the central bank’s latest weekly bulletin shows.
The Central Bank of Kenya (CBK), the central bank, published the figure in its weekly bulletin of Friday, 23 October. The debt table credits the National Treasury, the finance ministry, together with the CBK, and the August figure is marked provisional.
The Standard, a Nairobi newspaper, reported the total on Tuesday, 27 October. It put the figure in the context of the 2027 elections.
How Kenya’s Public Debt Splits at Home and Abroad
Domestic debt, owed mostly to Kenyan banks, pension funds and insurers, stood at Sh7.68 trillion (US$59.1 billion) at the end of August. That is 57.0% of the total.
External debt, owed to foreign lenders and bondholders, was US$44.8 billion, or Sh5.80 trillion in the bulletin’s own conversion. That is 43.0% of the total.
The CBK table counts publicly guaranteed external debt, meaning loans to state bodies that the government has promised to back. All US$ values use the CBK rate of Sh129.91 on 22 October, so US$59.1 billion plus US$44.8 billion is US$103.9 billion.
Treasury bonds, the government’s long-term paper, made up most domestic borrowing at Sh6.37 trillion (US$49.0 billion) at the end of August. Treasury bills, its short-term paper, added Sh1.20 trillion (US$9.3 billion).
In Plain English
- Public debt: everything the national government owes, plus loans it has guaranteed.
- Domestic debt: money borrowed in Kenya, mostly by selling Treasury bills and bonds.
- External debt: money owed to lenders and bondholders abroad, counted in US dollars.
- Eurobond: a dollar bond that Kenya sells to foreign investors.
- GDP: gross domestic product, the value of everything the economy produces in a year.
- IMF: the International Monetary Fund, a Washington lender of last resort for governments.
How Fast Kenya’s Public Debt Is Growing
Total debt rose Sh246 billion (US$1.9 billion) in August alone, from Sh13.23 trillion at the end of July. That is a monthly increase of 1.9%.
Since the end of December 2025, debt is up Sh1.18 trillion (US$9.0 billion), or 9.6%. Against June 2025, when it stood at Sh11.81 trillion (US$90.9 billion), the rise is 14.1%.
Domestic debt grew faster than foreign debt this year, up 12.3% since December from Sh6.84 trillion (US$52.6 billion). External debt rose 5.8% in dollar terms, from US$42.34 billion to US$44.80 billion.
Domestic debt kept climbing after August, reaching Sh7.82 trillion (US$60.2 billion) by 16 October. The bulletin gives no new external figure, so the October total for all public debt is not yet known.
Debt Pressure Before the 2027 Election
Kenya holds its general election on Tuesday, 10 August 2027, according to the Independent Electoral and Boundaries Commission (IEBC), the electoral body. The Standard says the debt level is intensifying concerns over repayments and borrowing ahead of that vote.
Kenyans.co.ke, a Nairobi news site, reported in August that the Treasury plans to borrow Sh1.32 trillion (US$10.2 billion) in 2027/28. Of that, Sh1.1 trillion (US$8.5 billion) would come from the domestic market and Sh236 billion (US$1.8 billion) from foreign lenders.
In 2023 Parliament replaced the Sh10 trillion (US$77.0 billion) debt ceiling with an anchor of 55% of GDP in present value terms. The CBK bulletin shows no debt to GDP ratio, so we cannot say how close Kenya is to that anchor.
What the Same Bulletin Says About Markets
The shilling traded at Sh129.91 per US$1 on 22 October, against Sh129.81 a week earlier. The CBK described it as stable.
Foreign exchange reserves were US$14.69 billion on 22 October, which the CBK says covers 5.9 months of imports. Its statutory aim is to keep at least four months of cover.
At the Treasury bill auction on 22 October, bids totalled Sh28.8 billion (US$222 million) against Sh28.0 billion (US$216 million) on offer. Interest rates on all three bill maturities fell.
Yields on Kenya’s Eurobonds, dollar bonds sold to foreign investors, rose by an average 2.17 basis points that week. A basis point is one hundredth of a percentage point.
What It Means for US Readers
US holders of Kenyan Eurobonds are exposed to a government debt load that grew again in August. The bulletin shows yields little changed that week.
Non-residents hold 4.54% of Kenya’s domestic government securities, the bulletin’s 16 October breakdown shows. By our calculation that is about Sh350 billion (US$2.7 billion), against 33.40% held by commercial banks.
Kenya is also seeking a new IMF programme, and Central Bank Governor Kamau Thugge said on 12 August that talks were ongoing. Our earlier report on the timing of an IMF visit is linked in the sources below.
Travellers and US companies in Kenya see no immediate change, as the bulletin announces no new rules. The shilling is steady near Sh130 per US$, and the figures matter most to bondholders and lenders.
What Is Not Known
The bulletin gives no ratio of debt to GDP, and the 55% anchor from 2023 may have changed since. Without that ratio, the debt cannot be compared with Kenya’s legal limit.
The August total is provisional, and no September or October figure for external debt has been published. The bulletin also does not name the foreign creditors or split the external debt by lender.
The Standard compares the August figure with September 2022, when it says debt was Sh8.701 trillion (US$67.0 billion). We could not check that earlier figure against a published central bank table, so we do not rely on it.
We found no separate Treasury statement on the 27 October report. The Treasury has not said how it expects debt to move before the August 2027 election.
Frequently Asked Questions
How much is Kenya’s public debt?
A provisional Sh13.48 trillion (about US$104 billion) at the end of August 2026, the CBK says. Domestic debt is 57.0% of that and external debt 43.0%.
How much has Kenya’s debt grown this year?
It is up Sh1.18 trillion (US$9.0 billion), or 9.6%, since the end of December 2025. It rose Sh246 billion (US$1.9 billion) in August alone.
How much does Kenya owe abroad?
External debt is US$44.8 billion, or Sh5.80 trillion, up from US$42.34 billion in December 2025. The figure includes publicly guaranteed debt.
Is Kenya’s debt above its legal limit?
We cannot say, because the bulletin gives no debt to GDP ratio. Parliament approved a debt anchor of 55% of GDP in present value terms in 2023.
Does this affect US travellers or investors?
Travellers face no change, as the bulletin announces no new rules. Holders of Kenyan Eurobonds should watch the debt data and the IMF talks.
Sources: Central Bank of Kenya, Weekly Bulletin of 23 October 2026; The Standard, report on public debt; Kenyans.co.ke, 12 August 2026; The Standard, IEBC election date; Business Daily, on the 2023 debt anchor; Rio Times, Kenya Eyes December IMF Visit, No Deal Date (all accessed 27 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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