Kenya’s gross domestic debt has increased to Ksh7.4 trillion, latest data from the Central Bank of Kenya (CBK) reveals. The figures, covering the week ending July 24, 2026, show a steady rise in government domestic borrowing during the early weeks of the new financial year.
Debt Composition Dominated by Treasury Bonds
Treasury bonds remain the largest portion of the domestic debt portfolio, valued at Ksh6.09 trillion and representing over 84% of total securities. Treasury bills follow at Ksh1.14 trillion, accounting for nearly 16%. Other components include a Central Bank overdraft of Ksh74.37 billion and miscellaneous domestic obligations totaling Ksh97.45 billion, which incorporate advances from commercial banks and pre-1997 overdrafts.
Financial Sector Holds Majority of Debt
Financial corporations are the primary holders of government debt, making up 80% of the total. Within this group, commercial banks possess 35.6%, pension funds 14.4%, and insurance companies 14.1%. Other holders include government institutions (7.1%), households (6.3%), and non-residents (4.2%).
Steady Debt Growth Over Two Years
The domestic debt has grown from Ksh6.33 trillion in December 2024 to over Ksh7.4 trillion in July 2026. The increase between mid and late July 2026 alone was about Ksh1.6 billion. This rise reflects ongoing government efforts to finance public spending through domestic borrowing while managing repayment schedules and debt servicing costs.
The CBK’s weekly bulletins provide critical insights into Kenya’s debt landscape, highlighting the importance of Treasury securities in supporting government financing needs.
