The Institute of Certified Public Accountants of Kenya (ICPAK) has issued a stark warning over the country’s ballooning public debt, now exceeding Sh11 trillion, and called for urgent reforms to rescue the economy from a looming crisis. 

Speaking during the 42nd ICPAK Annual Seminar held in Mombasa, Chairman Philip Kakai described the state of the economy as precarious. 

“Our economy is at a crossroads,” Kakai told delegates, “In 2021, Kenya experienced a remarkable post-COVID-19 rebound with GDP growth of 7.5 per cent, one of the highest in the region, fuelled by a resurgence in services, finance, and tourism. But in 2025, the outlook is far more cautious, with growth projections from the Central Bank and World Bank ranging between 5.3 per cent and 5.4 per cent.” 

Kakai said the slowing momentum exposes deep vulnerabilities, both external and internal, including unsustainable debt levels, rising inflation, and structural inefficiencies that hamper job creation and innovation. 

With debt servicing swallowing over 60 per cent of government revenues, Kakai painted a grim picture of limited fiscal space for development. 

“At the same time, inflation is driving basic goods out of reach for millions, while youth unemployment stands at a staggering 35 per cent, robbing our country of its greatest asset, its people,” he said. 

Despite the challenges, Kakai said there was hope, calling on accountants and other professionals to rise to the moment. He urged them to go beyond traditional roles and lead systemic change in public service, governance, and policy formulation. 

“We must push for reforms in budgeting, procurement, and service delivery. We must champion sustainability, transparency, and inclusivity in both public and private sectors,” he declared, emphasising the importance of professionals stepping into leadership positions.