MPs warn more domestic borrowing will starve private sector funding

Kenya’s domestic debt closed at Sh6.83 trillion at the end of 2025 to represent 55.6 percent of the Sh12.29 trillion total debt stock.

Photo credit: Shutterstock

The National Assembly Committee on Public Debt and Privatisation has warned that the government's increased borrowing from the domestic market could bring risks to the economy, including starving businesses and households of credit.

The warning comes as lower interest rates have opened a window for the National Treasury to ramp up the auction of bonds and Treasury bills through the Central Bank of Kenya –the government's fiscal agent.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.