MP Nyoro calls on President Ruto to halt excessive borrowing

Kiharu MP Ndindi Nyoro has once again voiced his concerns over the government’s growing appetite for loans, cautioning that the trend could have dire consequences for generations to come.

Nyoro, who previously chaired the Budget and Appropriations Committee, has remained outspoken about the country’s worsening debt situation.

He emphasized that Kenya possesses vast resources that, if properly utilized, could significantly boost government revenue without resorting to borrowing.

While addressing residents in Kiharu on Thursday, the legislator reaffirmed his earlier stance, stressing that the nation is already grappling with a debt crisis, and urged the government to make better use of its available assets.

"Let us look for other ways that we can raise resources for the country, because if we continue on the borrowing spree, those who carry the pain are our future generation. Those present at the time will have the threat because we will have put a burden that even Kenya cannot pay its debt, and the effects are catastrophic," he said.

"We must be very prudent with the management of our debt, whether we like it or not. That is a very great threat that we face as an economy. If you look at the money that we are borrowing, I believe there is another better way we can manage our public resources without adding to Kenyans' huge debts in future. We are saying that while giving solutions."

He also emphasized that the government holds substantial assets in both public and private corporate sectors, with significant financial value.

He pointed to Safaricom as a prime example, noting that the government owns shares in the company valued at over Sh300 billion.

According to him, selling part of this stake could raise funds for development, offering an alternative to external borrowing.

The MP, who recently voiced concerns about the country's rising debt levels, warned that Kenya risks being grouped among African nations that have defaulted on their debt obligations.

While speaking during the Institute of Public Finance’s annual budget review, he expressed alarm over the ballooning national debt, now estimated at Sh11 trillion, stressing that attempts to renegotiate existing debt agreements could worsen the situation.

Figures from the Central Bank of Kenya reveal that by December 2024, the country’s debt stood at Sh10.9 trillion.

Of this, about 54 percent was borrowed domestically, while 46 percent came from external lenders.