Treasury defends high domestic borrowing amid debt warning

National Treasury PS Dr Chris Kiptoo addressing the media outside Treasury Building in Nairobi on February 13, 2025.[Boniface Okendo, Standard]

Kenya will continue to rely heavily on domestic borrowing to finance its budget deficit, even as lawmakers warn that the country risks breaching the legal debt ceiling and crowding out private sector credit.

Appearing before the National Assembly Public Debt and Privatisation Committee, National Treasury Principal Secretary Chris Kiptoo defended the FY 2026/27-2028/29 Medium-Term Debt Management Strategy, which projects domestic borrowing of about Sh 1.2 trillion in the next financial year.