Kenya domestic debt rises to Ksh7.78 trillion amid new loan talks

Kenya’s gross domestic debt rose to Ksh7.78 trillion by September 25, 2026, according to data from the Central Bank of Kenya. This increase from Ksh7.73 trillion the previous week continues an upward trend in government borrowing from the domestic market. Treasury bonds constitute the majority of this debt at Ksh6.47 trillion, representing approximately 84.34 per cent of the total, while Treasury bills account for 15.66 per cent.

To address a widening fiscal deficit, which is projected to reach Ksh1.288 trillion in the 2026/2027 financial year, the Kenyan government has entered discussions with the World Bank and the African Development Bank (AfDB) for new loans. The proposed financing includes a Ksh94 billion Development Policy Operations programme from the World Bank and a Ksh34 billion policy-based loan from the AfDB.

These negotiations follow the conclusion of a previous Ksh466 billion arrangement with the International Monetary Fund. The World Bank funding is contingent upon agreed reforms intended to strengthen public financial management, governance, and oversight of government programmes.