MPs are seeking to tighten financial laws to compel the National Treasury to set up a real time comprehensive Public Debt Registry, including matched debt service expenditure.
The National Assembly’s Public Petitions committee has recommended changes to the Public Finance Management Act, 2012 to expressly require the Treasury to establish, and maintain an up-to-the-minute comprehensive Public Debt Registry, including matched debt service expenditure.
The committee, however, declined to grant a prayer on the 24-month debt freeze, but recommends that the National Treasury ensures strict compliance with the statutory debt anchor target of 55 percent of the gross domestic product (GDP) by October 2028 and sustains fiscal consolidation efforts beyond this target.
“The committee recommends that within 90 days upon tabling of this report, the National Treasury, submits to the National Assembly amendments to the Public Finance Management Act, 2012 and its attendant Regulations, to expressly require the National Treasury to establish, and maintain an up-to-the-minute comprehensive Public Debt Registry, including matched debt service expenditure,” Eric Karemba said in a report.
“The committee recommends that the National Treasury enhances public participation and stakeholder engagement during the preparation of the Medium-Term Debt Management Strategy and other key debt policy documents, including use of social media.”
The recommendations follow a public petition on the strengthening oversight, transparency and intergenerational equity in public debt governance filed by Beatrice N. Waiyaki and others representing Kiambu County Empowerment Network and the Bunge Mashinani Initiative.
Kenya's public debt had increased significantly, from approximately Sh2.4 trillion in 2014 to over Sh12.86 trillion, equivalent to 69.4 per cent of GDP in as at April 2026, raising concerns regarding the sustainability of the country's fiscal position and the implications of the debt burden for present and future generations.
The Parliamentary Budget Office (PBO) data shows that domestic debt accounted for Sh7.19 trillion, representing approximately 56 of the total debt stocks, while external debt amounted to Sh5.67 trillion, or approximately 44 per cent.
The accumulation of public debt has largely reflected persistent fiscal deficits arising from expenditure requirements that have exceeded available revenues.
The fiscal deficit for financial year 2025/2026 was estimated at approximately Sh1.2 trillion. Public debt service expenditure is projected at approximately Sh2.31 trillion in financial year 2026/2027, absorbing a substantial proportion of ordinary revenue and Consolidated Fund Services (CFS) expenditure.
The petitioners anchored their concerns on the principle of intergenerational equity under Article 201 (c) of the Constitution, which requires that the burdens and benefits arising from the use of resources and public borrowing be shared equitably between present and future generations.
They cited Article 10 on national values and principles of governance, Article 35 on access to information, and Article 43 on economic and social rights as relevant constitutional considerations in public debt management.
The petitioners prayed that the National Assembly, through the Public Petitions committee, engages the Ministry of Finance & National Treasury, the Auditor General, the Controller of Budget and other relevant institutions to ensure that debt policies to promote structured inter-generational dialogue, and strengthen engagement between Parliament, citizens, and civil society, while integrating inter-generational equity considerations into public debt policy and oversight further strengthen oversight of public debt management is achieved.
“The committee observed that public debt remains above the statutory debt anchor of 55 per cent of GDP in present value terms,” Mr Karemba said.
“Debt information by the National Treasury remains scattered across multiple reports, making it difficult for independent users to access comprehensive and timely debt information. Moreover, the reporting format may not be user-friendly, especially to the youth.”
He said Kenya remains exposed to debt sustainability risks arising from persistent fiscal deficits, refinancing pressures, exchange rate fluctuations, and increasing debt servicing costs, necessitating prudent borrowing and stronger fiscal discipline.
The Runyenjes lawmaker said the petition raises legitimate concerns regarding the rapid growth of Kenya's public debt and its implications for fiscal sustainability, economic development, and intergenerational equity as envisaged under Article 201 (c) of the Constitution.
He said Kenya's public debt remains above the statutory debt anchor of 55 percent of GDP in present value terms, underscoring the importance of continued fiscal consolidation, prudent borrowing, and effective debt management to ensure long-term fiscal sustainability.
“Rising debt service obligations continue to consume a significant proportion of government revenue, thereby reducing fiscal space for development programmes and essential public services,’’ he said.
“A freeze on borrowing would therefore result in massive macro-economic shocks that would be detrimental to the country. The target to confine the statutory debt anchor to 55 percent of GDP by October 2028 is geared towards debt sustainability.”
