Safina Party deputy party leader Willis Otieno has raised concerns over Kenya’s rising public debt, which he says has surpassed Ksh12 trillion, warning that the burden is increasingly falling on ordinary citizens.

Otieno took to his X on February 2, 2026, to say that Kenya’s growing debt crisis is no longer a distant policy issue, but a direct threat to everyday life. He said heavy domestic borrowing is pushing the cost onto ordinary Kenyans through higher taxes, expensive credit, and shrinking public services.

He noted that domestic borrowing crowds out private sector access to loans, leading to job losses and stunted economic growth.

“Kenya’s growing debt crisis is no longer a distant policy issue but a direct threat to the everyday lives of citizens. With public debt rising beyond Ksh12 trillion and the government turning heavily to local borrowing, the cost is pushed onto ordinary Kenyans through higher taxes, expensive credit, and shrinking public services,” he wrote.

Debt cycle threatens future growth

Otieno further warned that without productive investment, debt becomes a tool for survival rather than growth. “Debt locks the country into a cycle where citizens pay more, receive less, and inherit an even heavier burden in the future,” he said.

Official data from the National Treasury shows that as of the end of the 2024/2025 financial year, Kenya’s total public and publicly guaranteed debt stood at Ksh11.814 trillion, equivalent to 67.8 percent of GDP.

The government’s Medium Term Debt Strategy for 2026 indicates that 84 percent of gross borrowing will be sourced domestically and 16 percent externally.

Treasury rolls out automated debt platform

Ealier, Treasury Principal Secretary Chris Kiptoo announced on January 27, 2026, that Kenya will fully automate external debt payments starting February 2, 2026.

The system, integrated under the Treasury Single Account framework, links the Meridian Debt Management System with the Central Bank of Kenya exchange rates, IFMIS, Exchequer requisition, and Controller of Budget approvals.

Kiptoo said the reform will enhance efficiency, transparency, accountability, and governance in managing external debt obligations. A one-month parallel run with existing manual processes has been scheduled to ensure smooth adoption.