The National Assembly has approved the 2025 Medium-Term Debt Management Strategy (MTDS). The approval followed a detailed report from the Liaison Committee, which conducted extensive consultations with key stakeholders, including the National Treasury, the Central Bank of Kenya (CBK), and the Controller of Budget.  

The 2025 MTDS, laid before the House on March 5th, 2025, outlines a strategy to manage Kenya's debt, aiming to bring the debt-to-GDP ratio back to the legally mandated 55% (+5%) by 2028.  

The House approved a series of policy and financial resolutions including; 

1. 𝑇ℎ𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑇𝑟𝑒𝑎𝑠𝑢𝑟𝑦 𝐶𝑆, 𝐺𝑜𝑣𝑒𝑟𝑛𝑜𝑟, 𝐶𝑒𝑛𝑡𝑟𝑎𝑙 𝐵𝑎𝑛𝑘 𝑜𝑓 𝐾𝑒𝑛𝑦𝑎, 𝑎𝑛𝑑 𝐶𝑜𝑛𝑡𝑟𝑜𝑙𝑙𝑒𝑟 𝑜𝑓 𝐵𝑢𝑑𝑔𝑒𝑡 𝑓𝑢𝑙𝑙𝑦 𝑎𝑢𝑡𝑜𝑚𝑎𝑡𝑒 𝑡ℎ𝑒 𝑤𝑖𝑡ℎ𝑑𝑟𝑎𝑤𝑎𝑙 𝑜𝑓 𝑑𝑒𝑏𝑡 𝑠𝑒𝑟𝑣𝑖𝑐𝑒 𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝐶𝑜𝑛𝑠𝑜𝑙𝑖𝑑𝑎𝑡𝑒𝑑 𝐹𝑢𝑛𝑑 𝑏𝑦 31𝑠𝑡 𝑀𝑎𝑦, 2025, 𝑎𝑛𝑑 𝑠𝑢𝑏𝑚𝑖𝑡 𝑎 𝑟𝑒𝑝𝑜𝑟𝑡 𝑡𝑜 𝑡ℎ𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐴𝑠𝑠𝑒𝑚𝑏𝑙𝑦 𝑤𝑖𝑡ℎ𝑖𝑛 15 𝑑𝑎𝑦𝑠 𝑎𝑓𝑡𝑒𝑟 𝑡ℎ𝑒 𝑎𝑢𝑡𝑜𝑚𝑎𝑡𝑖𝑜𝑛.    

2. 𝑇𝑜 𝑠𝑡𝑟𝑒𝑛𝑔𝑡ℎ𝑒𝑛 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑐𝑜𝑛𝑡𝑟𝑜𝑙𝑠, 𝑒𝑛𝑠𝑢𝑟𝑒 𝑎𝑐𝑐𝑢𝑟𝑎𝑡𝑒 𝑎𝑛𝑑 𝑡𝑖𝑚𝑒𝑙𝑦 𝑝𝑢𝑏𝑙𝑖𝑐 𝑑𝑒𝑏𝑡 𝑠𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐𝑠, 𝑎𝑛𝑑 𝑒𝑛ℎ𝑎𝑛𝑐𝑒 𝑑𝑒𝑐𝑖𝑠𝑖𝑜𝑛-𝑚𝑎𝑘𝑖𝑛𝑔 𝑓𝑜𝑟 𝑔𝑟𝑒𝑎𝑡𝑒𝑟 𝑡𝑟𝑎𝑛𝑠𝑝𝑎𝑟𝑒𝑛𝑐𝑦 𝑎𝑛𝑑 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑎𝑏𝑖𝑙𝑖𝑡𝑦, 𝑡ℎ𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑇𝑟𝑒𝑎𝑠𝑢𝑟𝑦 𝑖𝑛𝑡𝑒𝑔𝑟𝑎𝑡𝑒𝑠 𝑡ℎ𝑒 𝑃𝑢𝑏𝑙𝑖𝑐 𝐷𝑒𝑏𝑡 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑆𝑦𝑠𝑡𝑒𝑚 𝑤𝑖𝑡ℎ 𝑡ℎ𝑒 𝐼𝑛𝑡𝑒𝑔𝑟𝑎𝑡𝑒𝑑 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑆𝑦𝑠𝑡𝑒𝑚 (𝐼𝐹𝑀𝐼𝑆) 𝑏𝑦 31𝑠𝑡 𝑀𝑎𝑦, 2025, 𝑎𝑛𝑑 𝑠𝑢𝑏𝑚𝑖𝑡𝑠 𝑎 𝑟𝑒𝑝𝑜𝑟𝑡 𝑡𝑜 𝑡ℎ𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐴𝑠𝑠𝑒𝑚𝑏𝑙𝑦 𝑤𝑖𝑡ℎ𝑖𝑛 15 𝑑𝑎𝑦𝑠 𝑎𝑓𝑡𝑒𝑟 𝑡ℎ𝑒 𝑖𝑛𝑡𝑒𝑔𝑟𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑡𝑤𝑜 𝑠𝑦𝑠𝑡𝑒𝑚𝑠.   

3. 𝑇𝑜 𝑚𝑖𝑡𝑖𝑔𝑎𝑡𝑒 𝑡ℎ𝑒 𝑔𝑟𝑜𝑤𝑖𝑛𝑔 𝑟𝑖𝑠𝑘 𝑜𝑓 𝑑𝑜𝑚𝑒𝑠𝑡𝑖𝑐 𝑑𝑒𝑏𝑡 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠 𝑎𝑛𝑑 𝑡𝑜 𝑟𝑒𝑑𝑢𝑐𝑒 𝑡ℎ𝑒 𝑡𝑒𝑛𝑑𝑒𝑛𝑐𝑦 𝑜𝑓 𝑡ℎ𝑒 𝑔𝑜𝑣𝑒𝑟𝑛𝑚𝑒𝑛𝑡 𝑏𝑜𝑟𝑟𝑜𝑤𝑖𝑛𝑔 𝑓𝑢𝑛𝑑𝑠 ℎ𝑒𝑙𝑑 𝑏𝑦 𝑝𝑢𝑏𝑙𝑖𝑐 𝑒𝑛𝑡𝑖𝑡𝑖𝑒𝑠, 𝑡ℎ𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑇𝑟𝑒𝑎𝑠𝑢𝑟𝑦 𝑑𝑒𝑝𝑙𝑜𝑦𝑠 𝑡ℎ𝑒 𝑇𝑟𝑒𝑎𝑠𝑢𝑟𝑦 𝑆𝑖𝑛𝑔𝑙𝑒 𝐴𝑐𝑐𝑜𝑢𝑛𝑡 (𝑇𝑆𝐴) 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑀𝑖𝑛𝑖𝑠𝑡𝑟𝑖𝑒𝑠, 𝐷𝑒𝑝𝑎𝑟𝑡𝑚𝑒𝑛𝑡𝑠 𝑎𝑛𝑑 𝐴𝑔𝑒𝑛𝑐𝑖𝑒𝑠, 𝑝𝑎𝑟𝑎𝑠𝑡𝑎𝑡𝑎𝑙𝑠, 𝑎𝑛𝑑 𝑝𝑢𝑏𝑙𝑖𝑐 𝑓𝑢𝑛𝑑𝑠 𝑏𝑦 1𝑠𝑡 𝐽𝑢𝑙𝑦, 2025.    

4. 𝑇𝑜 𝑖𝑚𝑝𝑟𝑜𝑣𝑒 𝑡𝑟𝑎𝑛𝑠𝑝𝑎𝑟𝑒𝑛𝑐𝑦 𝑎𝑛𝑑 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑖𝑛 𝑎𝑛𝑡𝑖𝑐𝑖𝑝𝑎𝑡𝑒𝑑 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑖𝑛 𝑑𝑜𝑚𝑒𝑠𝑡𝑖𝑐 𝑏𝑜𝑟𝑟𝑜𝑤𝑖𝑛𝑔, 𝑡ℎ𝑒 𝐶𝑎𝑏𝑖𝑛𝑒𝑡 𝑆𝑒𝑐𝑟𝑒𝑡𝑎𝑟𝑦 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑇𝑟𝑒𝑎𝑠𝑢𝑟𝑦 𝑎𝑛𝑑 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑃𝑙𝑎𝑛𝑛𝑖𝑛𝑔 𝑠ℎ𝑜𝑢𝑙𝑑 𝑤𝑖𝑡ℎ𝑖𝑛 60 𝑑𝑎𝑦𝑠:  𝑖. 𝐹𝑜𝑟𝑚 𝑎 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑐𝑜𝑚𝑚𝑖𝑡𝑡𝑒𝑒 𝑡𝑜 𝑒𝑠𝑡𝑎𝑏𝑙𝑖𝑠ℎ 𝑐𝑟𝑖𝑡𝑒𝑟𝑖𝑎 𝑓𝑜𝑟 𝑎𝑠𝑠𝑒𝑠𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑢𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑏𝑜𝑟𝑟𝑜𝑤𝑒𝑑 𝑓𝑢𝑛𝑑𝑠 𝑏𝑦 𝑀𝑖𝑛𝑖𝑠𝑡𝑟𝑖𝑒𝑠, 𝐷𝑒𝑝𝑎𝑟𝑡𝑚𝑒𝑛𝑡𝑠, 𝑎𝑛𝑑 𝐴𝑔𝑒𝑛𝑐𝑖𝑒𝑠, 𝑒𝑠𝑡𝑎𝑏𝑙𝑖𝑠ℎ 𝑡ℎ𝑒 𝑟𝑒𝑔𝑖𝑠𝑡𝑟𝑎𝑟 𝑜𝑓 𝐺𝑜𝑣𝑒𝑟𝑛𝑚𝑒𝑛𝑡 𝑠𝑒𝑐𝑢𝑟𝑖𝑡𝑖𝑒𝑠 𝑝𝑢𝑟𝑠𝑢𝑎𝑛𝑡 𝑡𝑜 𝑠𝑒𝑐𝑡𝑖𝑜𝑛 55 𝑜𝑓 𝑡ℎ𝑒 𝑃𝐹𝑀 𝐴𝑐𝑡, 𝑎𝑛𝑑    𝑖𝑖. 𝑅𝑒𝑐𝑜𝑟𝑑 𝑖𝑛 𝑡ℎ𝑒 𝑑𝑒𝑏𝑡 𝑟𝑒𝑔𝑖𝑠𝑡𝑒𝑟 𝑡ℎ𝑒 𝑑𝑒𝑡𝑎𝑖𝑙𝑠 𝑜𝑛 𝑡ℎ𝑒 𝑢𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑏𝑜𝑟𝑟𝑜𝑤𝑒𝑑 𝑓𝑢𝑛𝑑𝑠, 𝑖𝑛𝑐𝑙𝑢𝑑𝑖𝑛𝑔 𝑡ℎ𝑒 𝑠𝑒𝑡 𝑜𝑓 𝑝𝑟𝑜𝑗𝑒𝑐𝑡𝑠 𝑓𝑢𝑛𝑑𝑒𝑑 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝑝𝑟𝑜𝑐𝑒𝑒𝑑𝑠 𝑜𝑓 𝑖𝑛𝑓𝑟𝑎𝑠𝑡𝑟𝑢𝑐𝑡𝑢𝑟𝑒 𝑏𝑜𝑛𝑑𝑠.    

5. 𝑇ℎ𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑇𝑟𝑒𝑎𝑠𝑢𝑟𝑦 𝐶𝑆 𝑒𝑠𝑡𝑎𝑏𝑙𝑖𝑠ℎ𝑒𝑠 𝑎𝑛 𝑖𝑛𝑡𝑒𝑟𝑎𝑔𝑒𝑛𝑐𝑦 𝑐𝑜𝑚𝑚𝑖𝑡𝑡𝑒𝑒, 𝑖𝑛𝑐𝑙𝑢𝑑𝑖𝑛𝑔 𝑟𝑒𝑝𝑟𝑒𝑠𝑒𝑛𝑡𝑎𝑡𝑖𝑣𝑒𝑠 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝐶𝑒𝑛𝑡𝑟𝑎𝑙 𝐵𝑎𝑛𝑘 𝑜𝑓 𝐾𝑒𝑛𝑦𝑎 𝑎𝑛𝑑 𝑡ℎ𝑒 𝐶𝑜𝑛𝑡𝑟𝑜𝑙𝑙𝑒𝑟 𝑜𝑓 𝐵𝑢𝑑𝑔𝑒𝑡 𝑡𝑜 𝑟𝑒𝑣𝑖𝑒𝑤 𝑡ℎ𝑒 𝑝𝑢𝑏𝑙𝑖𝑐 𝑑𝑒𝑏𝑡 𝑝𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑝𝑟𝑜𝑐𝑒𝑠𝑠, 𝑑𝑒𝑏𝑡 𝑢𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛, 𝑎𝑛𝑑 𝑠𝑢𝑏𝑚𝑖𝑡𝑠 𝑎 𝑟𝑒𝑝𝑜𝑟𝑡 𝑡𝑜 𝑡ℎ𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐴𝑠𝑠𝑒𝑚𝑏𝑙𝑦 𝑏𝑦 31𝑠𝑡 𝑀𝑎𝑦, 2025.   

6. 𝑇ℎ𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑇𝑟𝑒𝑎𝑠𝑢𝑟𝑦 𝐶𝑆 𝑟𝑒𝑝𝑜𝑟𝑡𝑠 𝑎𝑛𝑑 𝑠𝑒𝑒𝑘𝑠 𝑎𝑝𝑝𝑟𝑜𝑣𝑎𝑙 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐴𝑠𝑠𝑒𝑚𝑏𝑙𝑦 𝑜𝑛 𝑎𝑛𝑦 𝑣𝑎𝑟𝑖𝑎𝑡𝑖𝑜𝑛 𝑡𝑜 𝑡ℎ𝑒 𝑎𝑝𝑝𝑟𝑜𝑣𝑒𝑑 𝑏𝑜𝑟𝑟𝑜𝑤𝑖𝑛𝑔 𝑚𝑖𝑥 𝑖𝑛 𝑡ℎ𝑒 2025 𝑀𝑒𝑑𝑖𝑢𝑚 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑆𝑡𝑟𝑎𝑡𝑒𝑔𝑦.   

Hon. Gladys Boss, Deputy Speaker, stressed the urgency of addressing the rising debt, stating, "The MTDS has been prepared at a time when the country's public debt reached Ksh11.2 trillion in January of 2025. That is equivalent to 65.7 per cent of Gross Domestic Product (GDP)." She highlighted the assurance from the Treasury to work towards consolidating fiscal policies to achieve the 55% debt-to-GDP target by 2028. 

Lawmakers’ also raised concerns about the actual utilization of borrowed funds. Hon. Martha Wangari stated, "The issue of where does that debt go, is the issue that many Kenyans and many of our voters are keen about. They want to be sure that if you are borrowing to build roads, which roads are these? If you are borrowing to do dams, which dams are these?" She advocated for the formation of a working committee to assess the effective utilization of borrowed funds and the recording of details in the debt register. 

Hon. Kangogo Bowen pointed out the lack of a formal debt committee, stating, "You'll find that our debt is just managed by some few individuals in Treasury and we told Treasury yesterday that there's need for the Treasury, the Central Bank and Office of Controller of Budget to have a team together with the Office of the Attorney General, which can manage our debt as a country." He also called for the digitization of the debt management system. 

Speaking on the automation of Debt Service Payments and implementation of a Treasury Single Account, Hon. Kimani Ichung'wah, emphasized, "Integration of IFMIS and the debt management system is critical in ensuring that we have accurate, timely data on our total indebtedness as a country." He also placed a strong emphasis on the full implementation of the Treasury Single Account." 

The financial resolutions approved by the House include setting fiscal deficit targets of 4.3% of GDP for FY 2025/26, 3.5% for FY 2026/27, and 3.2% for FY 2027/28, and a borrowing strategy of 35% net external borrowing and 65% net domestic borrowing.