National Treasury Cabinet Secretary John Mbadi has strongly refuted claims made by Kiharu MP Ndindi Nyoro regarding Kenya’s looming debt crisis. Nyoro, speaking at the Institute of Public Finance’s annual budget review, warned that the country could soon default on its loans, citing the current public debt of approximately Sh11 trillion. He further cautioned that any efforts to renegotiate existing debt could worsen the situation, pushing the country into Africa’s “debt defaulters club.”
Mbadi, however, dismissed these concerns as “irresponsible” and potentially panic-inducing. Speaking during Question Time in the National Assembly, the Treasury CS stressed that such statements were not only inaccurate but also dangerous in that they could create unnecessary fear among the public. He clarified that Kenya’s debt sustainability is not in jeopardy, despite the challenges the country faces.
“We need to be a little cautious. These statements can cause panic, and that’s the last thing we need,” Mbadi remarked. He reassured MPs that Kenya’s ability to meet its debt obligations remains intact, explaining that the issue at hand is not the country’s capacity to repay but liquidity—particularly as loans taken in recent years are maturing between now and 2032.
According to Mbadi, the country faces no major external debt repayment issues beyond this period, with no significant external loans due between 2034 and 2048. He emphasized the government’s commitment to meeting financial obligations, noting that the country has consistently paid salaries, met security expenditure, and supported county governments.
While Mbadi acknowledged the need for careful management of the country’s finances, he remained confident in Kenya’s ability to navigate the challenges without defaulting. He urged lawmakers to focus on solutions rather than stoking unnecessary panic, reiterating that the government is working to ensure that the country continues to meet its financial commitments.
This exchange highlights ongoing concerns over Kenya’s mounting public debt and the political debate surrounding fiscal management and the future of the country’s finances.
