Kenya is on a tight deadline to settle a Sh161 billion debt, with Treasury Cabinet Secretary John Mbadi warning that the bulk of the repayment is due by October 2025.

The financial obligation, drawn from commercial loans including Eurobonds and syndicated loans, presents a formidable challenge for the government as it scrambles to meet its commitments.

Speaking on a local radio station, Mbadi outlined the repayment breakdown, stating, "In September, we are supposed to pay Sh25.8 billion to the Trade and Development Bank, another Sh10 billion, and also Sh83.5 billion. Add another Sh3.4 billion, and that gives you Sh123 billion by October."

Beyond this immediate deadline, the country faces additional Eurobond repayments amounting to Sh116 billion, spread over three years.

"This is besides the Eurobond, that is the kind of pressure we are in," Mbadi remarked, revealing that Kenya will need to pay Sh38.7 billion annually until May 2027.

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In an effort to stabilise the country’s finances, the Treasury has initiated reforms, including shifting from a cash-based to a technical accrual accounting system to improve financial tracking.

The government is also rolling out a Treasury Single Account to consolidate state funds and curb financial inefficiencies.

Acknowledging past miscalculations in budget planning, Mbadi admitted, "We have been living a lie by over-budgeting," revealing that revenue projections for the 2025/26 financial year have been revised downward by Sh183 billion.

As the October deadline looms, the government is under immense pressure to implement austerity measures and revenue-boosting strategies to prevent further economic strain.