The Democratic Party of Kenya (DP) has expressed concern over the country's rising public debt, saying the growing borrowing burden is constraining private sector access to credit and threatening Kenya's long-term economic stability.
In a statement on Friday, DP National Chairman Peter Ndubai said Kenya's public debt, which stood at about KES 12.84 trillion as of February 2026, should concern both policymakers and citizens because of its implications for future generations.
Figures show that Kenya's debt comprised of about KES 7 trillion in domestic debt and KES 5.78 trillion in external debt, equivalent to about 69 per cent of GDP.
Ndubai argued that increased domestic borrowing by the government is crowding out businesses, farmers, entrepreneurs and young people seeking affordable credit, limiting investment and job creation.
"A government that is serious about economic transformation should empower its citizens to create wealth instead of crowding them out of the financial market," he said.
The opposition party also called for reduced public expenditure, urging the government to implement austerity measures, eliminate what it described as unnecessary spending and prioritise productive investments over recurrent expenditure.
The Tigania West MP aspirant further demanded greater transparency in the management of borrowed funds, saying Kenyans have a constitutional right to know how public debt is utilised.
The party called on the National Treasury, Parliament and constitutional oversight institutions to strengthen accountability through independent audits and ensure that any public officials found to have misused public resources are held responsible.
While criticising government borrowing, Ndubai however did not provide evidence of specific instances of corruption, misuse or financial mismanagement linked to particular loans or projects.
The government's stated policy is to balance domestic and external borrowing while reducing borrowing costs and refinancing risks through greater use of concessional financing and longer-term domestic securities.
Treasury has also maintained that Kenya's debt remains sustainable, although it faces a high risk of debt distress under current assessments.
The Treasury has previously said it is pursuing fiscal consolidation aimed at reducing the budget deficit and slowing the growth of public debt while maintaining funding for development priorities.
