World Bank loans to Kenya have more than doubled those from China, making it the country’s largest lender, according to a report by Africog. By September 2024, Kenya owed Sh1.7 trillion to the World Bank compared to Sh701 billion to China. Despite China’s major projects, such as the Standard Gauge Railway and Thika Superhighway, its share has been overshadowed by multilateral and commercial lenders.
The African Development Bank ranks as the third-largest lender at Sh519 billion, while the IMF takes fourth place at Sh423 billion. Kenya also owes significant sums to Citigroup Global Markets, Trade and Development Bank, and Afrexim Bank.
Africog highlights Kenya’s increasing debt burden, with loans tied to failed or non-existent projects, such as Sh99 billion for Rift Valley dams and Sh2.4 billion for the Galana Kulalu agricultural project. Misspent funds and defaulted loans, including those tied to the Standard Gauge Railway, exacerbate the crisis.
President William Ruto acknowledged the debt strain inherited by his administration, noting limited room for public investment. However, his government has continued borrowing, with Sh898 billion in new foreign loans taken in the year to June 2024.
Africog attributes the growing debt to a 2014 amendment to the Public Finance Management Act, which allowed borrowing without parliamentary oversight. It calls for the repeal of these changes, arguing they enabled unchecked borrowing, misuse of funds, and a lack of accountability. The lobby group also criticized the secrecy surrounding some Chinese loans and called for reforms to curb the debt crisis.
