Paulina Chavez
Press Secretary
[email protected]
Public debt levels have risen sharply across the African continent over the last 15 years, reaching unsustainable levels and plunging many countries into debt distress. In Kenya, rising public debt is no longer just an economic concern; it’s a full-blown governance challenge. While public debt can power transformative development, its misuse has led to stagnation, fiscal strain, and growing inequality. In 2025 NDI produced a political economy analysis (PEA) exploring how and why Kenya’s debt levels have soared between 2010 and 2023, despite formal checks and mounting public concern. The PEA identifies deep-rooted power dynamics, political incentives, and opaque institutional barriers as core drivers of the crisis.
The full report identifies seven key findings, including debt fueled by power and political interests, opaque and unequal debt processes, exclusion of the public from domestic debt markets, elections-driven borrowing spikes, the fact that Parliament’s oversight role is underutilized, debt decisions follow a continuous power cycle, and citizen agency is powerful but dormant. It highlights how elite groups benefit disproportionately from domestic debt mechanisms, while the public bears the burden.
Recommendations focus on enhancing civic engagement, improving legislative oversight, reforming debt issuance processes, and fostering fairer international lending practices.
