Kenya's historic public debt audit set for completion in August
This historic review, the first of its kind since Independence, is set to provide a detailed breakdown of all debt accumulated by the government.
Kenyans will soon get a clearer picture of the nation's public debt as the Office of the Auditor General (OAG) completes an unprecedented audit.
This historic review, the first of its kind since Independence, is set to provide a detailed breakdown of all debt accumulated by the government.
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The final report, expected by August, comes amid growing concerns about the country's rising financial obligations.
Deputy Auditor General Isaac Kamau told Members of Parliament last Thursday that although the initial plan was to submit the report by the end of the financial year, a few challenges have forced a slight delay.
“Our target was to send the report to Parliament by the end of the financial year,” Kamau said.
Appearing before the National Assembly’s Constitutional Implementation Oversight Committee, he stated that the audit process had run into difficulties, mainly due to challenges in tracing old documents.
“We are facing challenges in tracing some documents. Remember, we are auditing public debt from Independence, and that has brought some challenges,” Kamau said.
He explained that the audit was initiated following a request from Parliament for a special review of the country’s debt portfolio.
The confirmation of the audit progress came in response to questions raised by Suba South MP Caroli Omondi, who pressed the OAG on why a comprehensive audit of the national debt and tax waivers had not yet been conducted.
Sh11 trillion public debt
The move to audit the debt comes at a time when concerns over Kenya’s borrowing levels have intensified. Public debt has crossed the Sh11 trillion mark, sparking fears about the sustainability of the country's financial obligations.
Last month, National Treasury Cabinet Secretary John Mbadi revealed that by January 2025, Kenya’s total debt stood at Sh11.02 trillion. Of this, Sh5.93 trillion was domestic debt, while Sh5.09 trillion was external.
“In terms of external debts, we have the multilateral debts, bilateral debts, and then the commercial debts. In terms of multilateral debts, we have $2.83 trillion (Sh366.48 trillion), which, if you look at it, is about 55 to 56 per cent of the total external debts that are in multilateral,” Mbadi said.
Earlier this month, Kiharu MP and former National Assembly Budget Committee chairman Ndindi Nyoro cautioned that the country risks joining Africa’s ‘debt defaulters club’ if corrective measures are not taken. Speaking at the Institute of Public Finance’s annual budget review, Nyoro expressed his concerns over the growing burden.
“Any indication that we are going to default or are unable to service our loans is more catastrophic to our economy,” he said. His warning comes at a time when the government is facing tight fiscal conditions.
However, Treasury CS Mbadi attempted to reassure the public that despite the worrying figures, Kenya is not on the verge of default.
He acknowledged that the country’s debt levels are being closely monitored by major global financial institutions, including the International Monetary Fund (IMF) and the World Bank.
“The problem with debt sustainability is that the numbers are there, the figures are there. Even the IMF has the figures, the World Bank has the figures, and we have been rated out there,” Mbadi said.
According to him, the biggest challenge is liquidity, explaining that, “Loans were taken at a particular point in time, and most of them are maturing between now and 2032. That is why we have the pressure.”
Meanwhile, calls for accountability over Kenya’s debt have moved to the courts. Last week, Busia Senator Okiya Omtatah, together with eight others, filed a petition seeking legal accountability against former President Uhuru Kenyatta and other senior officials over the country’s debt accumulation.
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