Nyakang'o flags increased Sh13tr public debt, directs treasury to reduce borrowing

Controller of Budget (CoB) Dr Margaret Nyakang’o noted that commitment fees increase public expenditure during her submissions before the Public Debt and Privatisation Committee at Bunge Towers, Parliament, Nairobi, on August 18, 2026. [Elvis Ogina, Standard]

The Controller of Budget Margaret Nyakang'o has raised a red flag over the surging public debt, which currently stands at Sh13.01 trillion, and called on the National Treasury to urgently reduce borrowing to lower the country’s debt stock.

In her report for the 2025/2026 financial year, Nyakang'o highlighted that as a result of the debt stock, the debt-to-GDP ratio had risen to 68.5 per cent against the 55 per cent limit set by law. She also highlighted that the rising debt, persistent budget deficits, high debt-service costs and growing refinancing needs were putting increased pressure on public finances.