Borrowing is not a problem. In fact, every growing economy borrows to build infrastructure, expand opportunity and accelerate development. The problem begins when a nation spends more time paying for yesterday than investing in tomorrow.
That is the uncomfortable reality confronting Kenya today.
With public debt now exceeding Sh12 trillion, the country is carrying a burden that is increasingly squeezing its fiscal space.
In the 2026-27 Budget, approximately Sh2.3 trillion has been allocated to debt servicing, against projected ordinary revenue of about Sh3 trillion. In simple terms, nearly three out of every four shillings collected by the government will go towards repaying loans before funding healthcare, education, security or development.
This is not sustainable.
The warning signs are already visible. Kenyans are facing higher taxes, businesses are struggling under increased costs and government spending choices are becoming increasingly constrained. If this trend continues, the country risks entering a vicious cycle where new taxes are imposed not to improve services, but merely to keep up with debt obligations.
The way out is clear. Kenya must declare a temporary pause on non-essential new projects, particularly those that require fresh borrowing. Government should focus on completing ongoing projects, cutting wasteful expenditure and improving efficiency in revenue collection.
Economic growth—not punitive taxation—must become the primary strategy for increasing revenue.
Fiscal discipline is never popular, but it is necessary. The choice before us is simple: reset our finances now or allow debt to dictate our future. Kenya cannot borrow its way out of a debt problem. The time for caution, restraint and responsible budgeting is now.
