Kenya remains in a precarious debt position, accounting for 4% of Africa’s external debt, according to the latest data from the Central Bank of Kenya (CBK) and the African Debt Outlook 2025 by Afreximbank. As of December 2024, Kenya’s public debt stood at Ksh 10.9 trillion, with Ksh 5.9 trillion held by domestic creditors and Ksh 5.1 trillion owed to external creditors.
The report places Kenya among 10 African nations that collectively hold 69% of the continent’s external debt, which was projected at $1.17 trillion in 2023. South Africa leads the continent’s debt share at 14%, followed by Egypt (13%), Nigeria (8%), and Morocco and Mozambique at 6% each. Kenya ranks alongside Ghana, each holding 4% of Africa’s external debt stock.
Afreximbank attributes Kenya’s rising debt levels to multiple economic pressures, including the COVID-19 pandemic, increased costs of essential imports such as fuel and food, and a weakened shilling. High energy import costs in 2022 significantly contributed to the currency’s depreciation, leading to inflation, reduced purchasing power, and social unrest, evidenced by protests over rising food and fuel prices.
The report highlights that external debt in Africa has surged due to the rising issuance of Eurobonds. Many African nations, including Kenya, have increasingly tapped international capital markets to finance infrastructure projects and refinance existing obligations. Over the past decade, this reliance on external borrowing has contributed to the continent’s mounting debt burden, projected to reach $1.29 trillion by 2028.
In contrast, some East African countries—including Tanzania, Uganda, the Democratic Republic of Congo, and Rwanda—are classified as having a moderate risk of debt distress. However, Kenya’s high debt exposure poses a challenge to economic stability, particularly as global public debt is expected to reach $102 trillion in 2024, marking a $5 trillion increase from the previous year.
As Kenya navigates its economic future, policymakers face the urgent task of managing debt sustainability while balancing the need for development funding. Without effective debt management strategies, the country risks further economic strain, currency instability, and prolonged financial vulnerabilities.
