Kenya’s gross domestic debt rose to KSh7.726 trillion as of September 11, 2026, up from KSh7.668 trillion a week earlier, as the government continued to raise funds through the domestic securities market. The latest figures from the Central Bank of Kenya (CBK) show that Treasury bonds accounted for the largest share of the debt at KSh6.415 trillion, representing 83.02 per cent of the total. Treasury bills stood at KSh1.198 trillion, while the government’s overdraft at the CBK amounted to KSh13.91 billion. Other domestic debt stood at KSh100.25 billion.
The increase comes as the government continues to rely on domestic borrowing to finance its budgetary requirements. Government securities remain a key source of funding, with Treasury bonds making up more than four-fifths of the domestic debt stock. At the Treasury bill auction held on September 17, investors submitted bids worth KSh42.7 billion against an advertised KSh28 billion, representing a performance rate of 152.6 per cent. Demand was also strong for longer-term securities, with reopened 20-year and 30-year Treasury bonds attracting KSh81.4 billion in bids against a target of KSh60 billion.
Financial institutions continue to hold a significant portion of Kenya’s government securities. Commercial banks accounted for about 34.4 per cent of the domestic debt, while pension funds, insurance companies and other financial corporations also held substantial amounts. This means developments in government borrowing are closely linked to Kenya’s financial sector, as banks and institutional investors participate actively in Treasury auctions. For investors, government securities provide an avenue to invest in Treasury bills and bonds, while for the government, domestic borrowing provides funding for its financing needs.
The rising domestic debt stock comes amid broader attention on Kenya’s public finances and the cost of borrowing. While government securities remain an important part of the local financial market, continued borrowing increases the amount of debt that must be serviced over time. The CBK’s regular debt data therefore provides an important indicator for investors, businesses and households tracking interest rates, government borrowing and conditions in the financial markets. As the government continues to access the domestic market, changes in borrowing levels, Treasury yields and investor demand will remain key developments to watch.
