The Kenya Vision 2030, United Nations Agenda 2030 on Sustainable Development and African Union Agenda 2063 have placed heavy budgetary constraints on Kenya and necessitated heavy foreign borrowing in a bid to finance these development projects. Governments borrow externally in order to raise funds for budgetary deficit as opposed to internal borrowing which reduces the funds available for development projects. Kenya’s foreign debt was on a sustainable path until Kenya floated a sovereign bond in the European market to raise funds for infrastructure. The Auditor General in Kenya later presented a report claiming that the funds raised from the $2 billion sovereign bond could not be accounted for by the Treasury. The Treasury also failed to provide a list of projects that were financed using funds raised from the Eurobond. In 2018 Kenya floated another $ 2 billion sovereign bond in the Irish Stock Exchange to raise funds for infrastructure development. Excessive external borrowing has placed Kenya’s foreign debt on an unsustainable path and without prudent debt management policies Kenya is headed for a sovereign debt crisis. Foreign borrowing exposes Kenya to vulture funds which can purchase Kenya’s sovereign debt in secondary market for pennies and then sue for the full amount. It also paves way for foreign institutions and governments to interfere with the internal operations of a country. The paper will explore the theories of debt management and the factors that make Kenya susceptible to sovereign debt crisis. It will also examine the legal framework governing public debt management and offer recommendations on how to best manage Kenya’s sovereign debt.