Kiharu MP Ndindi Nyoro has once again voiced his concern over Kenya’s rising public debt, cautioning that continued borrowing poses a grave threat to the country’s future. He believes a shift in strategy is urgently needed—one that taps into the nation's existing assets instead of relying heavily on external loans.
During a community address in Kiharu on Thursday, Nyoro emphasized that Kenya is currently entangled in a debt trap. He stressed that the government should start leveraging state-owned assets to raise revenue, rather than placing the financial burden on future generations.
“If we keep borrowing recklessly, the consequences will fall squarely on our children and grandchildren,” he said. “There are more sustainable ways to raise money domestically, and we must explore those paths before it's too late.”
Nyoro, who previously chaired the Budget and Appropriations Committee, argued that the country possesses significant assets—particularly in the corporate sector—that could be monetized. He pointed out that some of these assets, like the government’s shares in Safaricom, have immense financial potential.
“Safaricom alone holds value of over Ksh.300 billion in government shares. Offloading a portion of that could generate substantial revenue without weakening government influence, as oversight can still be maintained through regulatory bodies,” he explained.
He also reminded the public that this isn't a new position for him, having championed similar views while serving in his previous capacity in Parliament. According to Nyoro, state assets should not be seen as ornamental, but as economic tools meant to serve the country’s financial health.
The MP's warnings come amid mounting concern over Kenya's ballooning debt, which currently stands at approximately Ksh.11 trillion. Speaking at the Institute of Public Finance’s annual review, Nyoro warned that the country risks being categorized among Africa’s debt defaulters if borrowing habits continue unchecked.
He cautioned that attempts to restructure existing debt might backfire, making the situation even more precarious. Central Bank of Kenya data reveals that by December 2024, domestic debt accounted for 54% of Kenya’s total Ksh.10.9 trillion debt, with the remaining 46% sourced externally.
Over the last decade, the country’s debt has surged more than fivefold—from under Ksh.2 trillion to its current levels—raising alarms among fiscal experts and policymakers alike.
