The President William Ruto administration plans to borrow over Ksh57.4 billion from 13 foreign countries in the 2025/26 financial year, according to the latest budget estimates from the National Treasury.
The bilateral funding, comprising both loans and grants, is part of the government’s financing strategy for the proposed Ksh4.2 trillion national budget.
The funds will go toward energy, transport, health, water, education, and digital infrastructure projects.Â
Moreover, these bilateral debts highlighted in the draft 2025 Budget Policy Statement (BPS) are part of a bigger financing strategy aimed at reducing reliance on expensive domestic borrowing.Â
However, Ruto still intends to meet the ambitious infrastructure and development goals outlined in his economic transformation agenda.
Also Read: Ruto’s Govt Budget Limit Set at Ksh 2.52 Trillion
List of the 13 countries Ruto is Borrowing FromÂ
Below is the full list of countries and the amounts Kenya expects to receive:
| No. | Country | Total Amount (Ksh) |
| 1 | Finland | 900,000,000 |
| 2 | Government of Belgium (BELGIUM) | 200,000,000 |
| 3 | Government of Italy (ITALY) | 1,009,400,000 |
| 4 | Government of Spain (SPAIN) | 3,157,000,000 |
| 5 | Government of Germany (KFW-GERMANY) | 10,658,500,001 |
| 6 | Government of France (AFD-FRANCE) | 15,349,616,857 |
| 7 | Kuwait Fund for Arab Development (KUWAIT) | 550,000,000 |
| 8 | Saudi Fund for Development (SAUDI ARABIA) | 1,322,000,000 |
| 9 | Government of Japan (JAPAN) | 6,555,371,134 |
| 10 | Government of South Korea (SOUTH KOREA) | 4,045,000,000 |
| 11 | Government of China (CHINA) | 9,388,300,000 |
| 12 | Government of Israel | 3,400,000,000 |
| 13 | Government of Hungary | 900,000,000 |
| Â | TOTAL | 57,435,187,992 |
External Financing By Grants
| Country | Total Amount (Ksh) | |
|---|---|---|
| 1 | Government of Denmark (DENMARK) | 1,212,000,000 |
| 2 | Government of Sweden (SWEDEN) | 340,000,000 |
| 3 | Government of Finland (FINLAND) | 500,000,000 |
| 4 | Government of Belgium (BELGIUM) | 10,000,000 |
| 5 | Â Government of Italy (ITALY) | 281,000,000 |
| 6 | Â Government of Germany (KFW-GERMANY) | 3,460,533,333 |
| 7 | Government of Germany (GIZ-GERMANY) | 270,000,000 |
| 8 | Government of France (AFD-FRANCE) | 1,356,223,562 |
| 9 | Government of Japan (JAPAN) | 907,000,000 |
| 10 | Government of the United States of America (USAID/USA) | 281,560,000 |
| TOTALÂ | 8,618,316,895 |
Also Read: Ruto’s Govt Budget Limit Set at Ksh 2.52 Trillion
Biggest Contributors
The biggest bilateral lender is Saudi Arabia, with Ksh91.45 billion in loans for fuel support, followed by France (Ksh45.82 billion) and Japan (Ksh33.69 billion) for major infrastructure investments.
Additionally, China, which has financed several infrastructure projects in Kenya like the Standard Gauge Railway (SGR), ranks fourth.
On the other hand, the United States is the largest grant provider, contributing Ksh20.87 billion to support governance, health, and social programs.
Germany also offers a combination of loans and grants.
The budget also includes financing from multilateral institutions such as the World Bank and the International Monetary Fund (IMF).
Current External Debt and Expenditure
Between July 2023 and June 2024, Kenya spent Ksh840.73 billion on public debt servicing.
In the first half of the current financial year (2024/25), which began in July 2024, the government paid Ksh585.63 billion in interest, Ksh444.73 billion on domestic debt and Ksh40.90 billion on foreign debt.
Kenya is on course to exceed Ksh1 trillion in total debt interest payments by the end of June 2025.
Moreover, the average monthly interest payment has risen to Ksh83.66 billion, up from approximately Ksh70 billion in the previous fiscal year.
Furthermore, data from the Central Bank of Kenya (CBK) and the National Treasury further reveal that gross domestic debt increased from Ksh5.41 trillion in June 2024 to Ksh6.15 trillion by April 17, 2025.
Meanwhile, total public debt, including both domestic and external borrowing, stood at Ksh10.93 trillion as of December 2024, up from Ksh10.56 trillion in June of the same year.
Notably, on February 14, 2025, Kenya’s gross domestic debt surpassed the Ksh6 trillion mark for the first time in history.
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