The government exceeded its domestic borrowing target by more than three times in the year to June 2025, edging out households and businesses, which were starved of credit amid the prolonged high interest charges by commercial banks.
Data from the Treasury shows that net domestic borrowing closed the fiscal year 2024/25 at Sh854.5 billion, which was 3.24 times the initial target of Sh263.2 billion as the State stepped up uptake of credit in the local market to offset reduced external financing.
