Kenya's escalating public debt and the government's failure to meet revenue targets have drawn sharp scrutiny from Members of Parliament. During a session with the National Assembly's Public Petitions Committee, Treasury officials acknowledged the persistent challenges in managing the nation's debt burden.
Debt Concerns and Management Efforts
Raphael Owino, Director General of the Public Debt Management Office, admitted that Kenya's debt levels remain alarmingly high, with debt servicing consuming a significant portion of resources that could otherwise finance development projects. Despite measures implemented since 2024 to refinance expensive debt with cheaper options, Owino emphasized that the country is not yet in a safe fiscal position.
Calls for Enhanced Revenue Collection
Committee Chairperson and Runyenjes MP Muchangi Karemba highlighted concerns from young petitioners and the Controller of Budget about continued borrowing. In response, Treasury representatives outlined plans to strengthen domestic revenue mobilization through digitization of the Kenya Revenue Authority's systems, aiming to widen the tax base and improve compliance.
Owino noted that outdated tax systems have hindered effective capture of the economy’s dynamics. The digitization initiative targets sectors with low compliance, including rental income, by collaborating with institutions like Kenya Power and the National Social Security Fund to identify non-compliant taxpayers.
Transparency and Public Engagement
The Treasury also committed to enhancing public communication on debt matters by creating simplified versions of key reports to improve transparency and oversight.
Overall, the dialogue underscored the urgent need for fiscal discipline, improved tax collection, and prudent borrowing to safeguard Kenya’s economic future.
