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[QUOTE="Munyaradzi Mafaro, post: 66449, member: 636"]
Parliament will approve 8.2 trillion shillings in new loans on Tuesday, pushing the country's debt burden to dangerous levels, reaching 116.2 trillion shillings, or 51.3 percent of gross domestic product. The borrowing package funds infrastructure and development programs through multilateral lenders such as the World Bank and the African Development Bank. It represents 11.3 percent of the 72.136 trillion shilling budget for the 2025-2026 fiscal year.

The debt jumped 26.2 percent from 89.5 trillion shillings in 2024, with external obligations at 55.9 trillion shillings and domestic debt at 60.3 trillion shillings. Timothy Chemonges from the Center for Policy Analysis warned that crossing the 50 percent threshold signals trouble, despite the government's claims that the debt remains manageable. Debt servicing already consumes over 30 percent of recurring spending, reducing funds for health and education.

The government defends the loans as necessary for infrastructure and energy projects tied to national development goals. However, 11.8 trillion shillings in borrowed money remains unused, according to official debt statistics. Domestic revenue will cover 51.6 percent of next year's budget while foreign financing accounts for the remaining 48.4 percent.
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