President William Ruto’s government borrowed an average of Ksh 562.7 million per day between 1st September and 31st December 2024, bringing the total borrowed during this period to Ksh 68.65 billion to finance various development projects. A document tabled in Parliament by Treasury Cabinet Secretary John Mbadi reveals that 18 loans were contracted between the Government of Kenya and bilateral and commercial lenders, with at least one loan disbursed before the report’s submission.
The newly contracted loans bring the total borrowing between May and December 2024 to Ksh 327 billion, following 11 loans worth Ksh 258.4 billion acquired between May and August.
Breakdown of New Loans
According to the report, three loans were secured from bilateral lenders, while 15 were acquired from the China Development Bank, with the total value of the 18 loans amounting to Ksh 68.65 billion. The tabling of the report aligns with the Public Finance Management (PFM) Act, which mandates the National Treasury to update Parliament periodically on the country’s debt status.
The funds are designated for financing various government projects, including those in the energy and roads sectors, as well as supporting the national budget.
Key Loan Agreements
Energy Sector: On 3rd October 2024, the Kenyan government signed a Ksh 4.59 billion loan agreement with the French government to construct a national system control centre designed to withstand physical and cybersecurity challenges. The loan will be repaid in 30 equal half-yearly instalments from 15th July 2030 to 15th January 2045.
- Economic Reforms: To finance reform-oriented expenditures under the Bottom-Up Economic Transformation Agenda, the government borrowed Ksh 8 billion from Germany on 11th September 2024.
- Climate Change & Green Energy: To mitigate greenhouse gas emissions, Kenya secured a Ksh 20.3 billion loan from Italy, with repayments scheduled from 31st December 2032 to 31st December 2045.
- Road Infrastructure: Several loans from the China Development Bank were secured to finance road upgrades across different counties, including:
- Cess (Nghonji) Rekeke Lake Jipe Road, Taita Taveta County – Ksh 1 billion loan, repayable in eight instalments from 15th October 2027 to 15th April 2031.
- Kiambu and surrounding roads – Ksh 2.29 billion loan for upgrades, repayable over the same period.
- Tawa-Nguluni Road upgrade – Ksh 1.84 billion loan.
- Nandi County road projects – Ksh 2.57 billion loan for multiple road upgrades.
- Kinyach-Arror-Kapsowar Road upgrade – Ksh 3.44 billion loan.
- Embu and Kirinyaga County road upgrades – Ksh 2.15 billion loan.
Ruto Calls for Prudent Use of Public Resources
The report comes at a time when President Ruto has emphasised the need for efficient use of public funds to manage the growing debt burden, which has significantly increased since 2013, when former President Uhuru Kenyatta’s administration came into power.
The National Treasury prepared the report in accordance with Section 31(3) of the Public Finance Management Act, 2012, which requires the Cabinet Secretary to submit details of loan balances, new borrowings, and amortisations to Parliament.
With a rising debt burden, Kenya’s ability to service these loans while maintaining essential public services remains a subject of national debate. The latest borrowing figures highlight the government’s continued reliance on external funding for development projects amid growing fiscal constraints.
