The International Center for Policy and Conflict is urging international lenders, including the International Monetary Fund (IMF), the World Bank, and others, to halt any additional loans to the Kenyan government until a thorough audit of the current debt stock is conducted.
They argue that the audit is necessary due to concerns over Kenya’s mounting debt levels and the need for transparency in financial management.
“All lenders, both domestic and foreign, must stop forthwith lending any loans to the Kenya government until the independent forensic audit is completed,” ICPC Executive Director Ndungu Wainaina said.
In a statement on Friday, Wainaina asked the creditors to initiate a comprehensive independent audit of the country’s domestic, foreign, concessional and commercial debts.
“While independent debt audit is proceeding, development partners supporting specific essential service sectors can continue with support to those sectors,” he said.
The audit should also include the total amount of state guarantees to all government-owned enterprises and agencies to track exactly what has happened with the loan money.
“For independent forensic audit transparency, it will be important for the process of identifying the audit agency to be made public,” he said.
Wainaina emphasized the urgent need for a comprehensive revision of Kenya’s 2024-25 budget, aligning it strictly with constitutional and budgetary laws. Currently, Kenya’s debt stands at Sh11.2 trillion, equivalent to 67% of the country’s GDP, up from 46% in 2010.
Debt servicing now consumes 63% of ordinary revenue, with interest payments alone accounting for 30.1% of revenue. Wainaina proposed that the government engage in debt restructuring negotiations for a minimum of five years, given the unsustainable fiscal situation.
He highlighted concerns that the growing debt burden is impacting living standards without clear improvements visible to citizens. Wainaina cited reports from the Parliamentary Budget Office indicating a looming liquidity crisis, as evidenced by the government’s struggle to meet essential development and service obligations.
