Martha Karua: How I plan to tackle Kenya's growing debt burden

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Martha Karua says she would restructure legitimate loans, challenge debts she considers illegal and curb borrowing if elected, as she seeks the opposition's 2027 presidential ticket.

The People's Liberation Party (PLP) leader outlined her proposals during an interview on Spice FM on Thursday, November 5, as she set out the economic agenda she would pursue if elected President.

Her remarks come as opposition leaders negotiate how to settle on a single presidential candidate to challenge President William Ruto in the 2027 General Election.

The process remains unsettled, with differences emerging over when to name the joint candidate.

Wiper leader Kalonzo Musyoka's camp has pushed for an early decision. At the same time, former Deputy President Rigathi Gachagua and his allies have favoured delaying the announcement to allow more time for negotiations.

Karua said she would remain in the presidential race until the opposition completes its selection process.

She also urged other aspirants to stay in the contest until the final stage and commit to supporting whoever is chosen.

Asked whether she believed she could defeat Ruto, Karua responded: “I think I can.”

She argued that opposition unity should be built around an agreed process and shared policies rather than individual ambitions.

She also urged political parties to demonstrate democratic practices and explain how they would govern before settling on a presidential candidate.

Against that political backdrop, Karua outlined a debt management plan built around restructuring legitimate loans, challenging debts she considers illegal and restricting new borrowing.

She said restructuring legitimate loans would ease repayment pressure and release more money for public services.

“The ones borrowed legitimately, you can restructure so that you have more money for public services,” she said.

For debts she considers illegal, Karua proposed taking legal action in international forums.

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“The debts that are illegal, we can litigate in the international forum. It's been done before,” she added.

Her proposal comes as Kenya's public debt stood at Sh12.32 trillion in March 2026, according to the National Treasury's Public Debt Management Office.

Domestic debt accounted for Sh6.78 trillion, while external debt stood at Sh5.54 trillion.

Debt repayments have also taken up a large share of government revenue. Treasury figures show that debt service reached Sh1.72 trillion in the 2024/25 financial year, equivalent to 71.2 per cent of ordinary revenue.

Karua also wants to restrict new borrowing, arguing that the government should only take loans when necessary and should not use borrowed money to meet recurrent expenditure.

She linked government borrowing to limited access to credit for businesses, saying the State's demand for loans from local banks was making it harder for private enterprises to access financing.

“When you are in a hole, they say, if you want to get out, stop digging. But currently, we keep digging,” she said.

The World Bank's November 2025 Kenya Economic Update reported that commercial banks held 42.6 per cent of domestic public debt, raising concerns about competition between government borrowing and private-sector access to credit.

Beyond borrowing, Karua said her administration would cut what she considers non-priority expenditure and redirect the savings to health, education and infrastructure.

She criticised spending on luxury vehicles, handouts and other privileges for political leaders, arguing that public resources should be directed towards services that benefit citizens.

“Leaders are not elected to serve themselves. They're elected to serve the people,” she said.