Kenya Public Debt

Fiscal Year 2024/2025

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Kenya Public Debt

Fiscal Year 2024/2025

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The Big Picture

Imagine Kenya as a family that has borrowed money to buy important things like roads, schools, and hospitals. The total amount of money Kenya owes is called "public debt." As of June 2025, Kenya's public debt was KSh 11.81 Trillion. This is like the family's total credit card bill and loans combined.

For kids: Think of Kenya as a big family. When the family needs money for important things like roads and schools, it borrows money. The total amount borrowed is called public debt, just like how your family might have a credit card bill.

Data Status

Source: National Treasury Annual Public Debt Management Report 2024/25
Last Updated: June 2025
Note: FY 2024/25 data is provisional

Total Public Debt

KSh 11.81T
67.8% of GDP

Domestic Debt

KSh 6.33T
53.5% of Total

External Debt

KSh 5.49T
46.5% of Total

Key Insight: Kenya's public debt grew by 11.7% in FY 2024/25, reaching KSh 11.81 trillion. While the debt-to-GDP ratio remains high at 67.8%, there's been a strategic shift toward domestic borrowing, which now accounts for 53.5% of total debt.

For kids: Kenya borrowed more money this year, like when your family uses its credit card more. Most of the borrowed money now comes from people and banks inside Kenya rather than from other countries.
No data available for selected fiscal year.

Debt Composition: Where Does The Money Come From?

Think of public debt like different types of loans you might have - some from family, some from banks, and some from friends. Kenya's debt also comes from different places, both inside and outside the country.

For kids: Imagine you borrowed money for different things - some from your parents, some from your grandparents, and some from friends. Kenya also borrows money from different places.

External Debt: Who Does Kenya Owe Abroad?

This is money borrowed from foreign countries, international organizations, and foreign investors. The largest chunk comes from Multilateral institutions like the World Bank and IMF, followed by Commercial lenders like those who buy Eurobonds, and Bilateral lenders (other countries).

For kids: This is like borrowing money from relatives who live in other countries. Some come from big groups of countries (like the World Bank), some from businesses that want to make money, and some from individual countries.

Domestic Debt: Who Does Kenya Owe At Home?

This is money borrowed from within Kenya. The government mostly does this by selling Treasury Bonds (long-term loans) and Treasury Bills (short-term loans) to individuals, companies, banks, and pension funds.

For kids: This is like borrowing money from people in your neighborhood. The government sells special papers called bonds and bills to Kenyan banks, companies, and regular people who want to help the country and earn a little extra money.

Key Insight: Kenya's external debt is increasingly sourced from multilateral institutions (55.5%), signaling a strategic shift toward more concessional financing. The US Dollar remains dominant at 59.8%, but Euro-denominated debt has grown to 27.3%, reflecting currency diversification efforts.

For kids: Kenya is borrowing more from big international groups that give better deals, and less from individual countries. Most of the money borrowed is in US dollars, but Kenya is also borrowing more in European money to be safer.
No data available for selected fiscal year.

Debt Service: Paying The Bills

Just like when you borrow money from your parents and have to pay it back with a little extra (interest), Kenya also has to pay back its loans. "Debt Service" is the total amount of money the country spends each year to pay back what it owes.

For kids: When you borrow money, you have to pay it back with a little extra as a thank you. Kenya also has to pay back the money it borrowed with some extra money called interest.

The Growing Burden of Debt Service

This line chart shows how much of the government's regular income (revenue) is used to pay for debt. It's like seeing how much of your allowance goes toward paying back money you borrowed.

For kids: This shows how much of the government's money is used just to pay back what it borrowed. If the line goes up, it means Kenya has less money left for other important things like schools and hospitals.

How Was It Spent in FY 2024/25?

In the last year, the country spent a total of KSh 1.72 Trillion on debt service. This chart breaks down that massive figure into its four main parts. The largest cost was the interest on domestic debt.

For kids: Last year, Kenya spent a lot of money (KSh 1.72 Trillion) just to pay back what it borrowed. Most of that money was extra thank-you money (interest) paid to people and banks inside Kenya.

Debt Service Timeline

Track the evolution of debt service payments over the past five years, showing both total payments and interest component.

For kids: This shows how much money Kenya has spent each year to pay back its loans. The blue line shows the total amount, and the red line shows just the extra thank-you money (interest).

Key Insight: Debt service now consumes 71.2% of government revenue, up from 50% in FY 20/21. Domestic interest payments (KSh 776.3 billion) are the single largest component, highlighting the high cost of domestic borrowing.

For kids: Kenya now has to use more than 70% of its money just to pay back what it borrowed! That's like if you got KSh 100 but had to spend KSh 70 just to pay back money you borrowed before you could buy anything else.
No data available for selected fiscal year.

Investor Profile: Who Holds Kenya's Debt?

Understanding who holds Kenya's debt is like knowing who has lent you money. It helps us understand how confident people are in Kenya's economy and how the debt is spread across different groups.

For kids: This is like knowing who you owe money to - maybe your parents, grandparents, or friends. It helps us understand who believes in Kenya and is willing to lend it money.

Domestic Debt Holders

This chart shows the distribution of domestic debt among different types of investors in Kenya's financial system.

For kids: This pie chart shows who in Kenya has lent money to the government. The biggest piece is banks, like how your parents might be the ones who lend you the most money.

Treasury Bonds by Holder Category

A detailed breakdown of who holds Kenya's long-term government securities (Treasury Bonds).

For kids: Treasury bonds are like special IOUs that the government gives to people who lend it money for a long time. This chart shows who holds these IOUs.

Exchange Rate Movements

Currency fluctuations significantly impact external debt servicing costs. This chart shows recent exchange rate movements against major currencies.

For kids: When Kenya borrows money from other countries, it has to pay it back in their money (like dollars or euros). This chart shows how the value of Kenya's money compares to other countries' money.

Key Insight: Commercial banks hold the largest share (37.4%) of domestic debt, followed by pension funds (14.1%) and insurance companies (12.6%). Household participation has grown to 6%, reflecting the success of retail bond programs.

For kids: Banks in Kenya have lent the most money to the government, like how your parents might be the ones who lend you the most money. Regular people are also starting to lend money to the government, which is good!
No data available for selected fiscal year.

Risks, Sustainability, and The Future

Managing a large national debt is like walking a tightrope. The government has a plan (Medium-Term Debt Strategy) with goals to keep the debt manageable. This section compares those goals with what actually happened and looks at the overall risk level.

For kids: Having a lot of debt is like walking on a tightrope - you have to be very careful! The government made a plan to handle the debt, and this section shows if the plan is working.

How Did We Do Against Our Goals?

The government sets targets to manage risk. This chart compares two key targets with the actual results. The results show that a higher portion of debt needs to be paid back sooner than planned (higher refinancing risk) and the average loan time is shorter than intended.

For kids: The government made goals for managing debt, like when you make a goal to save money. This chart shows if Kenya met those goals. It looks like Kenya has to pay back its loans sooner than planned.

Is The Debt Sustainable?

Debt is considered "sustainable" if the country can continue to pay its bills without major problems. A common rule of thumb is that the Present Value of debt should not be more than 55% of the economy's size (GDP). As you can see, Kenya is currently above that threshold, indicating a high risk of debt distress. The government is working to reduce this.

For kids: Debt is "sustainable" if a country can keep paying it back without getting into trouble. Right now, Kenya owes more money than experts think is safe, but the government is trying to fix this.

Refinancing Risk Profile

This chart shows when Kenya's debt is scheduled to mature, highlighting periods of high refinancing pressure.

For kids: This chart shows when Kenya has to pay back its loans. If there's a lot to pay back soon (like in 2025), it's riskier because Kenya will need to find new money to pay the old loans.

Key Insight: Kenya's debt carries a "high risk of distress" according to IMF assessments. Key risk indicators are worse than targets, with 9.4% of GDP maturing within one year (vs target of 7.7%) and average time to maturity at 7.9 years (vs target of 8.4 years).

For kids: Experts think Kenya's debt is risky because the country owes more money than is safe. Kenya has to pay back a lot of money soon, which makes it harder to manage all the debt.
No data available for selected fiscal year.

Regional Comparisons

Comparing Kenya's debt metrics with regional peers provides context for understanding relative performance and positioning.

For kids: It's like comparing how much money your family owes compared to your neighbors' families. This helps us see if Kenya is doing better or worse than nearby countries.

Debt-to-GDP Comparison with East Africa

How Kenya's debt burden compares with neighboring countries in the East African region.

For kids: This chart compares how much Kenya owes compared to its neighbors. It helps us see if Kenya owes more or less money than other countries nearby.

External Debt Service vs Exports

Comparing how much of export earnings are used to service external debt across regional economies.

For kids: When Kenya sells things to other countries (exports), it makes money. This chart shows how much of that money is used just to pay back money borrowed from other countries.

Key Insight: While Kenya's debt-to-GDP ratio (67.8%) is higher than regional peers like Tanzania (42.1%) and Uganda (48.9%), it's comparable to Rwanda (66.2%). However, Kenya's external debt service consumes 35.1% of exports, which is higher than Tanzania (28.4%) and Uganda (31.2%).

For kids: Kenya owes more money compared to what it earns than some neighboring countries, but about the same as Rwanda. Kenya has to use a lot of the money it makes from selling things to other countries just to pay back its loans.

Comparison Notes

Data sources and methodologies may vary between countries
Data as of 2024/25 or latest available
All figures in percentage terms for comparability

Glossary of Key Terms

Here are simple explanations of the important terms used throughout this dashboard, written so even a child can understand them.

For kids: This is like a dictionary for all the big words used in this dashboard, but explained in a way that's easy to understand!
ℹ️ Chart Information