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Treasury's renewed appetite for local loans to hurt firms

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National Treasury CS John Mbadi (centre), Principal Secretary Chris Kiptoo (left) and Institute Of Public Finance CEO James Muraguri during the 2025 medium-term debt management strategy in Nairobi, on March 26, 2025. [Wilberforce Okwiri, Standard]

Kenyan businesses face significant challenges in accessing credit due to high lending rates, a situation that could further be exacerbated by the government's growing appetite for borrowing locally.

This is as the National Treasury plans to crank up borrowing from local banks in the coming years, crowding out the private sector.

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