Kenya Faces Mounting Debt Crisis as Public Debt Surpasses Ksh 11.8 Trillion, Sparking Calls for Urgent Reforms

Kenya’s public debt has surpassed Ksh 11.8 trillion. This creates a major financial crisis. Money meant for hospitals, schools, and social programs is being swallowed by debt repayments.

On October 7, 2025, civil society groups, youth movements, academics, journalists, and religious leaders met at the Nairobi Serena Hotel. They held the Okoa Uchumi Debt Recovery and Economic Justice Conference. The theme was “Co-Creating Solutions for Kenya’s Debt Recovery and Economic Justice.” Participants adopted the Nairobi Serena Declaration. They called for transparency, accountability, and reforms in public finance management.

Delegates warned that Kenya’s debt is now a national emergency. They criticized corruption and mismanagement that funnel public funds to a few elites. Parliament was blamed for failing to oversee spending. Lawmakers often approve unbudgeted expenditure. The executive operates with minimal oversight. Citizens’ trust in institutions is weakening.

Rising debt also hurts small businesses. Ordinary citizens bear heavy taxes. IMF-backed austerity cuts social spending and worsens poverty. Delegates proposed solutions. They recommended Zero-Based Budgeting to stop waste. They called for a public Beneficial Ownership Register to expose hidden wealth. They demanded a forensic audit of public debt.

Other proposals included stricter limits on domestic borrowing. Independent institutions like the Auditor-General and Judiciary must be protected. Delegates also suggested special anti-corruption courts to fast-track economic crime cases. Tax reforms should shift the burden from ordinary citizens to wealth and capital gains.

Grounded in the 2010 Constitution, participants cited Articles 1, 3, and 10. They emphasized accountability, good governance, and public participation. Okoa Uchumi pledged to implement these resolutions. Plans include civic education, monitoring government spending, and county-level accountability forums.

The message was clear. Kenya does not have a revenue problem. It has an expenditure problem. Delegates vowed to hold the government accountable. They demand fiscal justice that prioritizes citizens over politics.