President Uhuru Kenyatta defended his administration's borrowing practices during Madaraka Day celebrations, asserting that strategic debt accumulation accelerated Kenya's economic development.
Speaking at Uhuru Gardens, the president rejected criticism of his government's loan-driven infrastructure projects, stating, "Debt becomes a burden only when led by a cabal of looters. Under visionary leadership, it fuels rapid progress." He highlighted South Korea's economic transformation over 25 years as a blueprint for Kenya's growth trajectory.
Kenya's public debt surged to Sh9 trillion by December 2021, according to the Central Bank, with Sh4.2 trillion in external obligations. This followed a 2019 parliamentary decision to raise the debt ceiling from Sh6 trillion to Sh9 trillion.
The administration has prioritized infrastructure development since 2013, including the Standard Gauge Railway and power plants. Debt levels climbed from Sh1.89 trillion in 2013 to an estimated Sh8.59 trillion by June 2022, with projections indicating Sh6.7 trillion in new borrowing by the end of Kenyatta's term.
Kenyatta warned that sustained growth depends on the next administration's ability to prevent corruption, asking, "Will borrowed funds serve development or private interests?" His remarks underscored the ongoing debate over Kenya's debt sustainability amid ambitious infrastructure expansion.
