MP Nyoro raises alarm over soaring public debt, warns of looming economic crisis

Speaking on Saturday at the Christian Foundation Fellowship's (CFF) 25th Anniversary, Nyoro claimed that Kenya has borrowed more than Ksh. 1 trillion in just the last eight months, averaging between Ksh. 3.5 billion and Ksh. 4 billion every day, including weekends.

“According to the Central Bank’s own data, in just eight months, our government has borrowed one trillion shillings. That’s about KSh 150 million every hour. If we sit here for four hours, Kenya has already borrowed KSh 600 million,” he said.

The lawmaker, a former chair of the powerful Parliamentary Budget and Appropriations Committee, expressed concern about the country's unsustainable debt trajectory, pointing out that it now spends up to 76% of its revenue on debt repayment.

“In August alone, Kenya collected Ksh 157 billion in ordinary revenue, and KSh 120 billion went into paying interest on existing loans. That means three-quarters of our revenue is going to debt,” Nyoro said.

“In July and August combined, we paid more in debt—both principal and interest—than the total revenue we collected.”

Nyoro criticised the government's overreliance on political appeasement to address economic challenges, claiming that Kenya's fiscal mismanagement is the result of structural governance failures rather than political disagreements.

“Economic management is the structure of governance, and when you see cracks on that house, you don’t call a painter to cover them,” he said. “Our mistake as a country is trying to cure economic problems with political management—silencing people with appointments or favors—and pretending that’s a solution.”

He further questioned the use of recent loans, claiming that much of the money borrowed is not funding development projects as intended.

“Kenya has borrowed heavily, yet the money isn’t going to infrastructure. Roads that are under construction are not funded from these new loans,” Nyoro said. “There’s another layer of debt known as securitization—when you see stadiums being built, that’s not from the trillion shillings I mentioned. The Talanta Board borrowed that money.”

The MP also pointed to the Nyota Program as an example of projects financed through external loans rather than domestic resources.

“The Nyota program is funded by the World Bank,” he said. “If the World Bank gives KSh 5 billion, the government should match it with another KSh 5 billion so that more people benefit. Or, better yet, give individuals KSh 100,000 each to start businesses.”

Nyoro clarified that his comments were not directed at any individual but were meant to raise awareness about Kenya’s deepening debt burden.

“I’m not targeting anyone,” he said. “But when our country falls into a debt hole, everyone—including my grandmother—will feel it.”

He warned that Kenya’s debt strategy, which involves borrowing expensive loans to repay existing ones, amounts to refinancing rather than debt reduction.

“Instead of repaying old debts, we’re taking new, more expensive ones to settle previous loans,” he said. “That’s what’s called refinancing, and it’s dangerous.”

Comparing the current administration’s borrowing to that of former President Mwai Kibaki, Nyoro noted that the Kibaki government borrowed KSh 1.2 trillion over a decade, financing major infrastructure projects such as the Thika Superhighway and rural electrification.

“In Kibaki’s entire tenure, KSh 1.2 trillion built highways, connected homes to electricity, and delivered real development,” Nyoro said. “Today, we’re borrowing the same amount in less than a year, with little to show for it.”