# Kenya public debt trends and fiscal management > Live situation record from CLSTR: https://clstr.news/situations/kenya-public-debt-trends-and-fiscal-management > Updated: 2026-10-27T15:50:53.000Z. Sources: 3. Developments: 2. Kenya’s public debt has shown significant upward movement. By June 2026, total public and publicly guaranteed debt reached KSh13.01 trillion, an increase of KSh1.2 trillion from the previous financial year. This period saw a shift in debt structure, with domestic borrowing rising to account for 56 per cent of the total, while external loans comprised 43.7 per cent. Despite meeting 100 per cent of debt service obligations, the National Treasury noted that rising debt and outstanding obligations have constrained fiscal space. By late September 2026, gross domestic debt specifically rose to Ksh7.78 trillion, with Treasury bonds making up approximately 84.34 per cent of that figure. To manage a projected fiscal deficit of Ksh1.288 trillion for the 2026/2027 financial year, the Kenyan government has entered negotiations with the World Bank and the African Development Bank for new loans. These discussions include a proposed Ksh94 billion programme from the World Bank, which is contingent upon reforms to strengthen public financial management and governance. ## Timeline ### 2026-10-27: Kenya public debt rises to KSh13.01 trillion Kenya's public debt increased by KSh1.2 trillion to reach KSh13.01 trillion by June 2026, with domestic borrowing now making up 56 per cent of the total debt stock. 3 sources. https://clstr.news/cluster/kenya-public-debt-rises-to-ksh1301-trillion ### 2026-10-02: Kenya domestic debt rises to Ksh7.78 trillion amid new loan talks Kenya's domestic debt has reached Ksh7.78 trillion as the government seeks Ksh127 billion in new loans from the World Bank and AfDB to manage a widening fiscal deficit. 2 sources. https://clstr.news/cluster/kenya-domestic-debt-rises-to-ksh778-trillion-amid-new-loan-talks --- Cite as: Kenya public debt trends and fiscal management. CLSTR, https://clstr.news/situations/kenya-public-debt-trends-and-fiscal-management