Kenya’s total public debt rose to KSh 11.97 trillion at the end of August 2025, equivalent to 67.4% of GDP, according to the National Treasury’s Monthly Debt Bulletin.
- •The increase of KSh 196 billion from July and KSh 1.23 trillion year-on-year was driven by new domestic borrowing and fresh disbursements from multilateral lenders.
- •The debt stock comprised KSh 6.57 trillion in domestic obligations (54.9%) and KSh 5.40 trillion in external debt (45.1%).
- •The Treasury noted that the exchange rate remained broadly stable at an average of KSh 129.24 per US dollar during the month, cushioning external debt valuations.
External Debt Rises on New Disbursements
External debt increased by KSh 18 billion to KSh 5.40 trillion, reflecting new inflows from multilateral and bilateral lenders.
- •Bilateral debt rose by KSh 8.1 billion to KSh 985.6 billion, led by China whose exposure increased to KSh 612.5 billion. France and Japan followed with KSh 98.7 billion and KSh 86.7 billion respectively.
- •Multilateral obligations expanded by KSh 19 billion to KSh 3.03 trillion, with the World Bank’s International Development Association (IDA) accounting for KSh 1.65 trillion, the African Development Bank KSh 546 billion, and the IMF KSh 477 billion.
- •Commercial debt declined by KSh 9.8 billion to KSh 1.31 trillion, while guaranteed debt rose marginally to KSh 81.5 billion.
| Category | July 2025 | Aug 2025 | Change |
|---|---|---|---|
| Bilateral | 977.47 | 985.56 | +8.09 |
| Multilateral | 3,006.43 | 3,025.47 | +19.05 |
| Commercial | 1,320.63 | 1,310.80 | ▼9.84 |
| Guaranteed | 80.77 | 81.46 | +0.69 |
| Total External Debt | 5,385.29 | 5,403.28 | +17.99 |
- •During the month, the Kenya shilling depreciated slightly against major currencies, including the euro (−1.9%), yen (−1.3%), and yuan (−0.9%), but remained steady against the dollar.
- •External debt service totaled KSh 48.4 billion in August, comprising KSh 20.6 billion in principal repayments and KSh 27.8 billion in interest payments.
Domestic Borrowing Accelerates
Domestic debt rose sharply by KSh 178.3 billion to KSh 6.57 trillion, driven by higher issuance of Treasury bonds and bills. Bond holdings increased by KSh 187 billion to KSh 5.37 trillion, while Treasury bills rose by KSh 3 billion to KSh 1.06 trillion.
| Holder | July 2025 | Aug 2025 | Change (KSh Mn) |
|---|---|---|---|
| Commercial Banks | 2,727,812.69 | 2,805,405.84 | +77,593.15 |
| Insurance Companies | 466,743.97 | 478,993.27 | +12,249.30 |
| Pension Funds | 1,853,802.19 | 1,889,757.99 | +35,955.80 |
| Others | 1,339,007.59 | 1,391,509.24 | +52,501.65 |
| Total Domestic Debt | 6,387,366.43 | 6,565,666.33 | +178,299.90 |
- •Government securities worth KSh 186 billion were advertised in August, attracting bids of KSh 614 billion. Successful bids amounted to KSh 361 billion, with redemptions totaling KSh 175 billion.
- •Net domestic financing stood at KSh 235 billion against a full-year target of KSh 613 billion.
