Treasury Plans to Borrow Ksh1.02 Trillion Ahead of 2027 Elections
The Kenyan government has revealed plans to borrow an additional Ksh1.02 trillion to bridge the widening budget deficit, raising concerns amid the country’s already high public debt levels.
Treasury Principal Secretary Chris Kiptoo made the announcement on Wednesday, explaining that the borrowing is intended to maintain fiscal stability as spending pressures continue to rise across various sectors.
According to Reuters, the planned borrowing will cover a budget gap equivalent to 4.9 per cent of Kenya’s Gross Domestic Product (GDP), which is slightly higher than the 4.8 per cent recorded in the current fiscal year.
The Treasury disclosed that the borrowing package will include net external financing of Ksh241.8 billion (approximately USD 1.86 billion) and net domestic borrowing of Ksh775.8 billion. As of September 2025, Kenya’s total public debt had surged to Ksh12.06 trillion, with domestic debt accounting for around Ksh6.66 trillion and external debt at Ksh5.39 trillion.
The government’s borrowing plans have drawn criticism from some quarters. Kiharu Member of Parliament Ndindi Nyoro condemned the increasing debt levels, pointing out that at the current pace, President William Ruto’s administration is borrowing more than Ksh3 billion every day.
The announcement comes at a time when the government is under mounting pressure to meet growing expenditure demands. Part of the borrowed funds is expected to go towards paying newly recruited teachers and hiring more staff to address the country’s teacher shortage.
The government has announced plans to hire 20,000 intern teachers beginning in January 2026. In addition, in May 2025, President Ruto revealed that the government will allocate Ksh1.6 billion for teacher training and another Ksh1 billion to support their promotions.
Besides the education sector, the government intends to channel funds to critical areas such as health and security. On Monday, the government recruited 10,000 police officers, a move aimed at strengthening national security ahead of the 2027 General Elections.
Recruitment of police officers had largely been on hold for over three years due to budget limitations that constrained the government’s ability to expand the force.
Kenya had also hoped to secure additional financial support through a new International Monetary Fund (IMF) programme. However, the programme has been delayed due to disagreements over the classification of securitised loans, leaving the government to rely heavily on domestic and external borrowing.
In light of rising debt and spending pressures, PS Kiptoo urged all government departments and agencies to adopt comprehensive financial reforms. Key among these reforms is the rollout of an electronic procurement system designed to reduce corruption, minimise wastage of public funds, and improve transparency in government spending.
The planned borrowing and reforms come at a critical time as Kenya approaches the 2027 elections, with the government seeking to balance rising expenditure needs, public service delivery, and fiscal responsibility.
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