Reports Uncover Persistent Gaps in Kenya’s Public Debt Transparency and Oversight
Media personnel pose for a photo with IPF stakeholders during the launch of the Debt Transparency and Minimum Tax Paper.
Kenya is facing growing concern over the transparency and accountability of its rising public debt, as revealed in two new reports by the Institute of Public Finance (IPF). The State of Debt Transparency in Kenya and Strengthening Debt Accountability in Kenya point to persistent structural and institutional weaknesses that continue to undermine public scrutiny and oversight, despite an improved legal framework.
According to the reports, while the government has made strides in publishing critical debt-related documents like the Annual Debt Management Reports and the Medium-Term Debt Strategy (MTDS), key challenges remain.
The challenges include inconsistent publication of Monthly Debt Bulletins, limited disclosure of transaction-level data, and outdated reporting on contingent liabilities, especially from Public-Private Partnerships (PPPs).
Kenya’s public debt has surged to Ksh 11.5 trillion equivalent to 67 percent of GDP as of April 2025, with Ksh 6.2 trillion in domestic debt and Ksh 5.3 trillion in external debt. The rapid accumulation of debt amid these transparency gaps raises red flags, particularly around fiscal sustainability and public trust.
One of the most pressing issues is the government’s failure to consistently publish timely and detailed reports, such as the External Debt Register and External Resources Handbook. These omissions hinder civil society, Parliament, and the public from effectively tracking the country’s debt commitments.
The lack of transparency surrounding loan agreements is also of concern. Key details, including terms and conditions of large infrastructure loans like those for the Standard Gauge Railway, are often withheld due to non-disclosure clauses. Such secrecy fuels public speculation and raises accountability concerns.
The reports further reveal incoherence among critical fiscal planning documents the MTDS, Budget Policy Statement (BPS), and Annual Borrowing Plan (ABP) which carry differing debt targets and policy directions. This inconsistency weakens credibility and oversight of government borrowing.
Moreover, the limited role of Parliament in debt decisions remains a critical gap. Currently, Parliament does not ratify individual loan agreements, a practice contrary to international best standards. A 2022 proposal to amend the Public Finance Management (PFM) Act to require prior parliamentary approval for loans exceeding Ksh 1 billion failed to pass.
During the Media engagement, IPF urges urgent reforms including legal amendments to strengthen Parliament’s role, improved timeliness and accessibility of debt data, better coherence across fiscal documents, and stronger institutional oversight.
The reports call for decisive action to foster transparency and accountability in public borrowing and ensure that debt fuels equitable and sustainable development,with Kenya still classified as high risk for debt distress.
