The National Treasury could face stricter reporting requirements under proposed legal reforms seeking to improve transparency in government borrowing, with MPs calling for a central debt register that tracks public loans and the money spent repaying them in real time.
The National Assembly’s Public Petitions Committee has proposed changes to the Public Finance Management Act, 2012, that would require the Treasury to keep a complete and continuously updated record of the country’s public debt. The proposed register would also capture related debt service expenditure, giving citizens and other interested parties a clearer picture of borrowing and repayment costs.
The recommendations follow a petition presented by Beatrice N. Waiyaki and other representatives of the Kiambu County Empowerment Network and the Bunge Mashinani Initiative, who raised concerns about the rapid increase in public debt and its implications for future generations.
Although the petitioners sought a 24-month suspension of borrowing, the committee declined to support the request. Instead, it wants the Treasury to bring the country’s debt within the legal limit of 55 per cent of gross domestic product (GDP) by October 2028 and maintain efforts to control public spending and borrowing after reaching the target.
The committee has also called for more opportunities for citizens and other stakeholders to contribute to the formulation of government debt policies, including the Medium-Term Debt Management Strategy.
"The committee recommends that the National Treasury enhances public participation and stakeholder engagement during the preparation of the Medium-Term Debt Management Strategy and other key debt policy documents, including use of social media,"the committee states.
The push for tighter controls comes against the backdrop of a sharp increase in Kenya’s public debt over the past decade. The country’s debt has risen from approximately Sh2.4 trillion in 2014 to more than Sh12.86 trillion as of April this year, representing 69.4 per cent of GDP.
The rising figures have fuelled concerns about whether the country can sustain its borrowing levels while meeting its development needs and funding essential services. The petitioners argued that debt decisions should take into account not only the needs of the current population but also the financial obligations that will be inherited by future generations.
Their petition relied on Article 201(c) of the Constitution, which provides for the fair sharing of the benefits and burdens arising from the use of public resources and government borrowing between present and future generations.
The petitioners also referred to Article 10, which outlines the national values and principles of governance, Article 35 on the right to access information, and Article 43, which covers economic and social rights.
They urged Parliament to work with the National Treasury, the Auditor General, the Controller of Budget and other relevant institutions to develop debt policies that encourage structured dialogue between generations and promote greater accountability.
The petitioners further called for stronger links between Parliament, members of the public and civil society organisations, arguing that citizens should have a meaningful role in decisions on public borrowing and how borrowed funds are managed.
One of the issues highlighted by the committee is the difficulty of obtaining complete and timely information on government debt because the details are spread across different reports.
"Debt information by the National Treasury remains scattered across multiple reports, making it difficult for independent users to access comprehensive and timely debt information. Moreover, the reporting format may not be user-friendly, especially to the youth,"
the committee says.
A centralised register would address this concern by bringing debt information into one regularly updated record. Including debt service expenditure would also make it easier to examine the relationship between the loans taken by the government and the costs incurred in servicing them.
Beyond transparency, the committee has raised concerns about the financial risks associated with Kenya’s continued borrowing. These include recurring budget deficits, difficulties in refinancing maturing debt, movements in exchange rates and growing repayment costs.
Such pressures, the committee noted, call for more careful borrowing decisions and stronger management of public finances to prevent the debt burden from placing further strain on government resources.
"Rising debt service obligations continue to consume a significant proportion of government revenue, thereby reducing fiscal space for development programmes and essential public services," it says.
The committee’s position places the focus on improving debt reporting, enforcing the existing debt target and maintaining fiscal discipline, rather than halting new borrowing for two years.
The proposed legal changes would require the Treasury to maintain a comprehensive and current public debt register, while the recommendations on public participation seek to give citizens, civil society groups and other stakeholders a greater voice in shaping the country’s borrowing policies.
The committee has also made clear that reaching the 55 per cent debt-to-GDP target by October 2028 should not mark the end of efforts to manage public debt. It wants the government to continue pursuing fiscal consolidation beyond that date to strengthen the country’s financial position and address the risks associated with rising debt servicing costs.