Nairobi Senator Edwin Sifuna has called for immediate reductions in government expenditure following the announcement that Kenya’s public debt has reached Ksh12.82 trillion. The call comes after Controller of Budget Margaret Nyakang’o highlighted the growing threat that rising borrowing and debt servicing costs pose to the country’s fiscal health.

Speaking on Tuesday, July 28, 2026, Sifuna emphasized that the next government will have limited time to implement solutions. He argued that cutting government spending should be the first priority to relieve taxpayers and restore fiscal stability.

“We do not have the luxury of time,” Sifuna said. “Immediate changes are necessary. The incoming leadership must swiftly reduce government spending to address taxation challenges in the next financial year.”

Debt Breakdown and Fiscal Pressure

Controller of Budget Nyakang’o informed the National Assembly’s Public Petitions Committee that Kenya’s total public debt stands at Ksh12.82 trillion, with 60% domestic and 40% external debt. She revealed that debt repayments now consume 71% of government revenue, leaving only 29% for other operations.

“We cannot survive under these conditions,” Nyakang’o stated, warning that continued borrowing is currently sustaining government functions. She urged policymakers to devise strategies to mitigate this fiscal strain.

Concerns Over County Spending

Nyakang’o also raised alarms about county governments mismanaging public funds, noting that some counties divert money released for pending bills to other uses. This has led to numerous complaints from unpaid suppliers.

Her office, in collaboration with the Central Bank of Kenya, is working to strengthen oversight mechanisms to curb such fund diversion. She warned counties that pending bills will face stricter scrutiny ahead of the next general election.

Call for Focus on Solutions

Sifuna urged political leaders to prioritize addressing the country’s fiscal challenges over political positioning. “Let’s move beyond debates about who will lead and focus on the future of the country,” he said.

While he did not specify which expenditures should be cut, Sifuna indicated that lowering government spending would pave the way for tax reforms in the upcoming financial year.

Transparency and Public Engagement

Nyakang’o defended her office’s transparency efforts, noting that expenditure reports are regularly published online for public scrutiny. She highlighted the importance of digital engagement in enhancing awareness of government spending patterns.

Kenya’s escalating public debt and government expenditure remain central to national economic discussions, with increasing calls for fiscal discipline, revenue reforms, and accountability to safeguard sustainable growth.