Former National Assembly Budget Appropriation Committee chair Ndindi Nyoro has shared alternative ways Kenya can raise funding and cut borrowing. Nyoro maintained his earlier stance, warning that the country could plunge into debt distress. The Kiharu Member of Parliament (MP) said the Kenya Kwanza administration ought to be prudent in debt management, which currently stands at about KSh 11 trillion. “We must be very prudent in the management of our debt. Whether we like it or not, this is a great threat that we face as an economy,” said Nyoro, while addressing his constituents on Thursday, April 24. How Kenya can manage rising debt Nyoro shared alternative ways the country can manage public debt, citing proper utilisation and management of public debt. The lawmaker said the government’s shareholding in companies like Safaricom PLC, is more than enough to raise funds borrowed externally.
“There is a better way we can manage and utilise our public resources instead of overburdening taxpayers with heavy borrowing. Government assets exist to make money for development… for example, the government stake in Safaricom is about KSh 300 billion. If we value an asset like Safaricom and manage it well, the government can easily get the money we are borrowing externally,” the MP explained. Safaricom CEO Peter Ndegwa speaking at a past investor briefing. Nyoro proposed the sale of a proportion of its stake in the telco to raise budgetary funding, adding that the state can still influence decisions in the company. “The shareholding was more before. By selling just a proportion of the stake, we can raise the money we are borrowing and still continue to influence the decision in Safaricom through regulators.
“But if we continue borrowing, we will overburden our future generation with debts. We must look for alternative ways. If the country falls into a state of not being able to repay the loans, the effects are catastrophic,” he said. How much is govt stake in Safaricom? Meanwhile, in the financial year ending March 2025, the giant telecommunications firm paid KSh 22.04 billion dividends to shareholders, including the government of Kenya. According to the National Treasury, the government is one of the biggest shareholders in Safaricom, holding a stake of 35%. Safaricom paid KSh 0.55 per share interim dividend in February 2025, translating to KSh 7.7 billion paid to the National Treasury. Apart from Safaricom, the Treasury also received dividend payouts from companies in which it holds the largest stakes. These companies include KCB Group, Kenya Pipeline Company, Kenya Ports Authority and KenGen.
by Wycliffe Musalia
