Ruto Administration Exceeds Kenya’s Borrowing Limit

The administration of President William Ruto has surpassed Kenya’s legal borrowing limits, as flagged by Controller of Budget Margaret Nyakang’o. The public debt stock reached Ksh 10.8 trillion as of September 30, 2024, amounting to 67% of GDP—12% above the 55% debt ceiling set by law.

Data reveals the government borrowed over Ksh 210 billion between June and September 2024, averaging Ksh 2.2 billion daily. This breach follows legislative amendments easing borrowing restrictions.

Nyakang’o has urged the government to cut non-productive expenditures and prioritize economic policies fostering growth to manage rising debt servicing costs, which are projected at Ksh 1.9 trillion this fiscal year.

Experts warn increased borrowing could crowd out funds for critical development and raise debt servicing expenses.