Kenya’s outstanding loans from the World Bank rose to KSh2.045 trillion at the end of June 2026, crossing the KSh2 trillion mark for the first time, Treasury data show.
The increase represents an addition of KSh556 billion from the multilateral lender since President William Ruto took office in September 2022, bringing the World Bank’s share of Kenya’s multilateral debt to 66.9 per cent.
Kenya plans to draw about KSh170.5 billion in World Bank loans each fiscal year for the next four budget cycles, with the concessional financing offering lighter interest rates and longer repayment periods than other sources.
Treasury officials said the rise in World Bank borrowing reflects the government’s continued implementation of the Medium-Term Debt Management Strategy, which prioritises domestic financing while seeking to maintain a sustainable public debt portfolio.
Total external debt stood at KSh5.79 trillion at the end of June 2026, accounting for roughly 44 per cent of total public debt, while projected debt-servicing costs for the current financial year total KSh2.3 trillion, with external creditors responsible for 35.2 per cent of that bill.
The Treasury noted that the projected debt-servicing expenditure equals about 79.8 per cent of the ordinary revenue the government expects to collect for the year ending June 2027, underscoring limited fiscal space for other spending priorities.
