KIHARU MP Ndindi Nyoro has raised serious concerns about Kenya’s fiscal policies, alleging the existence of illegal “secret debts” he says are harmful to the economy.
Speaking at the 42nd Institute of Certified Public Accountants of Kenya annual seminar in Mombasa, the MP warned that current debt levels are unsustainable and risk crippling the nation.
Nyoro said Kenya is currently borrowing Sh3.5 billion every day, with total public debt standing at Sh12.5 trillion. The economy is projected to reach $131 billion (about Sh17.01 trillion) by year-end, and the fiscal deficit for 2025-2026 is projected at -4.8 per cent of GDP, with a debt-to-GDP ratio of around 68 per cent.
“The debt-to-GDP ratio must reflect the truth; it is actually over 70 per cent,” Nyoro said, criticising what he called misleading reporting practices. He traced Kenya’s debt trajectory, noting that during President Mwai Kibaki’s tenure, total borrowing averaged Sh100 billion annually, while under President Uhuru Kenyatta, it rose to about Sh700 billion per year.
“The current administration inherited Sh8.7 trillion in debt. In less than three years, Kenya has borrowed Sh3.8 trillion — money equivalent to what Kibaki borrowed in 10 years,” Nyoro said.
The MP also highlighted off-the-book loans labeled as securitisation of the Roads Maintenance Levy Fund and the Talanta bond, among others.
He cited the Sh45 billion Talanta Stadium project, noting that Kenya will end up paying Sh145 billion over 15 years due to interest.
“Funds that should build roads, schools and hospitals are being diverted to service unnecessary debts,” Nyoro said, explaining how secret borrowing reduces school capitation and limits educational quality.
Nyoro urged the government to maintain a single, transparent debt ledger to ensure accountability. He stressed that borrowing is not inherently harmful but must be properly recorded to prevent hidden obligations from straining the economy.
“Fiscal policy has been hijacked by debt,” he said, warning that domestic borrowing has slowed private sector lending and undermined productivity, ultimately affecting employment and fueling social vices.
by BRIAN OTIENO
