Kenya, Sept. 7 -- When Kenya's state debt surpassed Ksh 12.1 trillion, Ndindi Nyoro, a member of parliament from Kiharu, slammed President William Ruto, calling his government's borrowing habits dangerous. He warned of an impending debt trap fuelled by hidden securitisation bonds and highlighted daily borrowings reaching Ksh 3.4 billion, contrasting this with the more cautious approach of previous president Mwai Kibaki.
Concerns about the impact of debt on future generations have been amplified by Nyoro's warnings against irresponsible borrowing, which have gained significant traction in light of growing budgetary strains and the impending 2027 elections.
At a business exhibition in Nyeri County, Nyoro detailed the frightening rate at which Kenya's debt is piling up. The national debt has grown to over Ksh 12.1 trillion, according to figures he cited from the Central Bank. In only three years, the government has added more than Ksh 3.5 trillion to the debt.
This pace, which he deemed unsustainable, amounts to Ksh 100 billion each month, or Ksh 3.4 billion per day. He brought attention to the hidden borrowing practices of securitisation, such as the monthly packaging of fuel charges and road maintenance funds into bonds with a face value of up to Ksh100 billion.
While securing repayments in the long run, these manoeuvres hide the real level of fiscal hardship, according to Nyoro. According to Nyoro, the previous leader, Kibaki, borrowed only Ksh 1.2 trillion over a decade to fund the Thika Superhighway and other prominent projects.
However, Ruto stated that the amount has quadrupled in a short period due to excessive borrowing, yet no real progress has been made. Nyoro cited the Nairobi-Nakuru motorway and Talanta Stadium as examples of projects financed through public-private partnerships and securitised funds, which were not included in the official debt estimates.
Unchecked debt caused crises in Zambia and Ghana, he said, and this off-balance-sheet method runs the danger of making Kenya a cautionary story. The impending 2027 elections give Nyoro's outburst further political weight. He said the government was putting short-term benefits ahead of responsible management by increasing expenditure on re-election optics.
Missed revenue goals and hefty interest payments, which account for more than 40% of collections, are fiscal constraints that make the problem worse. Rather than taking out limitless loans, Nyoro said that Kenya's strength is in its leaders' ability to discipline themselves and put the country's own resources first.
On social media, many are discussing the effects of the debt trap on regular Kenyans, echoing Nyoro's worries. There is increasing discomfort within governing circles about Ruto's economic approach, as the MP goes from being the budget chair to becoming a vociferous critic.
There is growing concern about the effectiveness of securitisation bonds in facilitating growth and whether they actually widen the gap. With daily Ksh 3.4 billion increases driving Kenya closer to overload, Nyoro's condemnation of excessive borrowing offers a stark picture of economic risk.
Despite their seeming advancement, the securitisation bonds he criticises pose a danger to future stability, particularly in light of the fact that the 2027 elections will increase expenditure demands.
Finally, the charges levelled by Ndindi Nyoro against Ruto's careless borrowing bring attention to the critical need to reduce Kenya's Ksh 12.1 trillion debt. Through a comparison to Kibaki's time, he draws attention to the risks of covert strategies such as securitisation bonds, which have the potential to ensnare future generations in repayment problems under increasing budgetary pressures.
Published by HT Digital Content Services with permission from Bana Kenya.