Kiharu MP Ndindi Nyoro has raised serious concerns about Kenya’s fiscal policies, citing the existence of hidden “secret debts” that threaten the economy.
Speaking at the 42nd Institute of Certified Public Accountants of Kenya (ICPAK) annual seminar in Mombasa, Nyoro said the country is currently borrowing Ksh3.5 billion every day, pushing total public debt to Ksh12.5 trillion. He noted that the debt-to-GDP ratio is over 70%, warning that misleading reporting masks the true scale of borrowing.
Tracing Kenya’s debt trajectory, Nyoro said that during President Mwai Kibaki’s tenure, annual borrowing averaged Ksh100 billion, rising to about Ksh700 billion per year under President Uhuru Kenyatta. The current administration inherited Ksh8.7 trillion in debt and has borrowed Ksh3.8 trillion in less than three years equivalent to Kibaki’s decade-long borrowing.
He also cited off-the-book loans, including the Roads Maintenance Levy Fund securitisation and the Ksh45 billion Talanta Stadium project, which will cost Ksh145 billion over 15 years due to interest.
Nyoro warned that hidden debts divert funds from essential services like roads, schools, and hospitals, slowing private sector lending and increasing unemployment. He urged the government to maintain a single, transparent debt ledger, stressing that borrowing itself is not harmful if properly recorded.
“Fiscal policy has been hijacked by debt,” Nyoro said, cautioning that failure to curb secret borrowing could jeopardise economic growth and social stability in Kenya.
