The Senate of Kenya has demanded full transparency from the National Treasury of Kenya over the country’s rising public debt, which reached KSh12.2 trillion by December 2025, as lawmakers seek clarity on new loans and financial obligations signed by the government.
During a meeting held on Thursday at the Parliament Buildings, the Senate Standing Committee on Finance and Budget interrogated a report from the Treasury detailing loans contracted between January 1, 2025 and August 31, 2025.
The committee, chaired by Ali Roba, expressed concern that this was the first time in four years the Senate had received comprehensive information on the country’s debt position, despite legal requirements for regular reporting.
Roba noted that while Kenya’s debt levels may not appear alarming when compared to some global economies, transparency remains critical to protect the country’s fiscal stability.
“This is the first time in four years that we are receiving information on the debt position contrary to the law. The National Treasury should submit this information so that we can safeguard the fiscal space for future generations,” Roba told the committee.
Senators Demand Full Disclosure of Loan Agreements
Migori Senator Eddy Oketch urged the Treasury to provide full disclosure of contractual agreements and market instruments, including all government guarantees that could expose the country to hidden debt risks.
Oketch emphasized that such obligations should be formally recognized as contingent liabilities to prevent the emergence of a future debt crisis.
“The National Treasury should provide the Senate with total disclosure of these contractual agreements and legal frameworks so that we can have a bird’s eye view of the situation,” Oketch said.
The committee’s Vice Chairperson Tabitha Mutinda also requested detailed information on loans from global lenders such as the International Monetary Fund and the World Bank.
Mutinda said the information would help senators better represent Kenya in upcoming international financial engagements.
Concerns Over Rising Domestic Debt and High Interest Loans
Lawmakers raised alarm over the country’s growing domestic debt, which has increased by KSh1.747 trillion, partly due to the government’s reliance on commercial borrowing with higher interest rates.
Kisii Senator Richard Onyonka questioned why the government opted for loans with interest rates as high as 14 percent, while multilateral lenders such as the African Development Bank typically offer significantly lower rates of 3 to 4 percent.
“The National Treasury should explain why some loans were borrowed at 14 percent while African Development Bank rates are usually between three and four percent. These loans should be renegotiated to lower the burden on taxpayers,” Onyonka said.
Senate Questions Road Levy Securitization Plan
The committee also scrutinized the government’s growing reliance on securitization of public funds.
Senators raised questions about a proposal to securitize KSh7 billion from the Road Maintenance Levy Fund in order to raise KSh170.5 billion for infrastructure financing.
Lawmakers warned that such financial structures must be clearly explained to Parliament to ensure they do not expose taxpayers to long-term financial risks.
Treasury Given 60 Days to Submit Full Debt Report
Senators maintained that Parliament has a constitutional responsibility to ensure every shilling borrowed by the government is transparent, accountable, and sustainable.
