KID-001 Public Finance · Debt Baseline

Kenya's Public Debt: Stock, Composition and Servicing Costs

A current, source-based account of how much Kenya owes, how the debt is structured and how much it costs to service.

Key Findings

Reporting Scope and Observation Dates

This report uses two observation dates because Kenya's official debt publications serve different purposes and are released on different schedules:

Public and publicly guaranteed debt includes borrowing undertaken directly by the national government and debt for which the government has formally guaranteed repayment. Both source publications describe the relevant observations as provisional (CBK Table 7.1, p. 22; National Treasury Tables 3–4, pp. 28–30).

Note on GDP Ratios: Debt-to-GDP ratios are reported strictly for June 2025. Applying the June 2025 GDP measure to the May 2026 debt stock would combine mismatching reporting periods and produce an invalid ratio.

1. Total Public Debt Reached KSh 12.896 Trillion (May 2026)

At the end of May 2026, Kenya's public and publicly guaranteed debt stood at KSh 12.896 trillion. Domestic debt was KSh 7.239 trillion, while external debt was KSh 5.657 trillion.

Component KSh Trillion Share of Total
Domestic debt 7.239 56.1%
External debt 5.657 43.9%
Total Public & Publicly Guaranteed Debt 12.896 100.0%
A composition chart showing Kenya's May 2026 public debt of KSh 12.896 trillion, comprising 56.1% domestic debt and 43.9% external debt.
Figure 1. Kenya's public and publicly guaranteed debt composition, May 2026. Data: Central Bank of Kenya (2026), Table 7.1, p. 22. Analysis and visualisation: Kenya in Data. Figures are provisional.

At June 2025, the corresponding shares were 53.5% domestic and 46.5% external. The May 2026 release reported a domestic share 2.6 percentage points higher than the June 2025 baseline.

The reported nominal debt total was KSh 1.082 trillion (9.2%) higher in May 2026 than in June 2025. This reflects a comparison between two official snapshot publications rather than a fully reconciled cash-flow ledger.

2. Instrument & Creditor Breakdown (June 2025 Baseline)

The National Treasury's June 2025 fiscal-year report provides the detailed instrument and creditor composition across both domestic and external portfolios.

Component KSh Billion Share of Total Debt
Domestic Treasury bonds 5,110.010 43.25%
Domestic Treasury bills 1,036.875 8.78%
Other domestic debt 179.124 1.52%
External multilateral debt 3,045.391 25.78%
External commercial debt 1,322.292 11.19%
External bilateral debt 1,106.363 9.36%
External suppliers' credit 14.419 0.12%
Total Public & Publicly Guaranteed Debt 11,814.474 100.00%
Ranked bars showing the components of Kenya's June 2025 debt stock. Treasury bonds are 43.3% and external multilateral debt is 25.8%.
Figure 2. Detailed composition of Kenya's public debt, June 2025. Data: National Treasury (2025), Tables 5 & 10, pp. 34 & 45. Analysis and visualisation: Kenya in Data.

Treasury bonds formed the single largest component, representing 43.25% of the total debt stock and over 80% of domestic debt. Treasury bonds had a weighted average time to maturity of 7.5 years at June 2025.

3. Debt Service Absorbed 71.2% of Ordinary Revenue

In FY 2024/25, total debt service amounted to KSh 1.722 trillion. Interest payments accounted for KSh 987.495 billion (57.34%), while principal repayments accounted for KSh 734.609 billion (42.66%).

Debt Service Component KSh Billion Share of Service Share of Revenue
Domestic interest 776.257 45.08% 32.07%
External interest 211.238 12.27% 8.73%
Total Interest 987.495 57.34% 40.80%
Domestic principal 366.805 21.30% 15.16%
External principal 367.804 21.36% 15.20%
Total Principal 734.609 42.66% 30.35%
Total Debt Service (FY 2024/25) 1,722.104 100.00% 71.16%
Composition chart showing Kenya's FY 2024/25 debt service: domestic interest 45.1%, external interest 12.3%, domestic principal 21.3% and external principal 21.4%.
Figure 3. Composition of Kenya's debt service, FY 2024/25. Data: National Treasury (2025), Table 4, p. 30. Analysis and visualisation: Kenya in Data. Domestic principal excludes routine Treasury-bill rollovers.

Domestic Debt Carried a 13.0% Weighted Average Interest Rate

While domestic and external principal repayments were virtually identical at approximately KSh 367 billion each, domestic interest payments were more than 3.6 times higher than external interest.

The Treasury's weighted average interest rates explain this divergence: the domestic debt portfolio carried a 13.0% average interest rate, compared with just 3.9% for external debt and 8.7% across the entire public debt portfolio.

Horizontal bars displaying weighted average interest rates: domestic debt at 13.0%, total public debt at 8.7% and external debt at 3.9%.
Figure 4. Weighted average interest rates on Kenya's public debt, FY 2024/25. Data: National Treasury (2025), Section 9.3 & Figure 17, p. 68. Analysis and visualisation: Kenya in Data.
Portrait infographic explaining the portfolio facts associated with higher domestic interest costs: stock size, average interest rates and the external creditor mix.
Explainer: Why domestic debt service costs more. 1) Domestic stock is larger (KSh 6.33T vs 5.49T); 2) 55.5% of external debt is from concessional/multilateral lenders at low rates; 3) Domestic yields reflect market bond auctions.

4. Domestic Interest Composition & Debt Holders

Treasury bonds accounted for KSh 677.762 billion, or 87.3%, of total domestic interest and charges in FY 2024/25. Treasury bills generated KSh 87.560 billion (11.3%).

Domestic Interest Component KSh Billion Share of Domestic Interest
Treasury bonds 677.762 87.3%
Treasury bills 87.560 11.3%
Other interest and charges 10.935 1.4%
Total Domestic Interest & Charges 776.257 100.0%

At June 2025, commercial banks held the largest institutional share of domestic debt at 34.7%, followed by pension funds (14.1%), government & parastatals (13.8%), and insurance companies (12.6%).

Ranked bars showing domestic debt holders: commercial banks 34.7%, pension funds 14.1%, government and parastatals 13.8%, and insurance companies 12.6%.
Figure 5. Holders of Kenya's domestic public debt, June 2025. Data: National Treasury (2025), Table 6, p. 36. Analysis and visualisation: Kenya in Data.

5. Statutory Debt Anchor Benchmark

At June 2025, Kenya's nominal debt stood at 67.8% of GDP, while the present value of debt was reported at 63.7% of GDP.

Section 50(2A) of the Public Finance Management Act sets Kenya's statutory debt anchor at 55% of GDP in present-value terms. The present-value debt level exceeded this legal anchor by 8.7 percentage points.

Square bullet chart comparing the June 2025 present-value debt ratio of 63.7% of GDP with the statutory anchor of 55.0% of GDP, a gap of 8.7 percentage points.
Figure 6. Present value debt ratio vs statutory anchor, June 2025. Data: National Treasury (2025), Table 3 & Section 8; PFM Act §50(2A). Analysis and visualisation: Kenya in Data.

Interpretation & Caveats:

  • Provisional data: Official numbers are provisional and subject to standard revisions by CBK and Treasury.
  • Different observation dates: Debt stock is as of May 2026; detailed service and debt-to-GDP ratios reflect FY 2024/25.
  • Revenue definition: The 71.2% service ratio uses ordinary revenue (tax + recurring non-tax revenue).
  • Institutional holdings: Bank and pension debt holdings represent gross balance-sheet assets held on behalf of depositors and beneficiaries, not net institutional profits.

Download Open Data & Assets

Kenya in Data releases all underlying observation tables and chart files under an open CC BY 4.0 license for public use, journalism, and research.

Primary Sources & References

Central Bank of Kenya (2026). Monthly Economic Indicators: June 2026. Nairobi: Central Bank of Kenya. Official CBK Bulletin PDF.

National Treasury of Kenya (2025). Annual Public Debt Management Report: Financial Year 2024/2025. Nairobi: The National Treasury and Economic Planning. Official Treasury Report PDF.

Kenya Law (2024). Public Finance Management Act, No. 18 of 2012 (consolidated 26 April 2024), Section 50. Kenya Law Database.