Gov't borrowing Ksh.3.4 billion daily: MP Ndindi Nyoro claims

Kiharu Member of Parliament Ndindi Nyoro has criticised the government's growing reliance on securitisation, warning that it amounts to "borrowing by another name" and risks burdening future generations.

Speaking at a business expo in Nyeri County, the legislator questioned the logic behind securitising fuel levies and road maintenance funds to borrow up to Ksh.100 billion every month.

He argued that such financial maneuvers sidestep deeper issues of fiscal mismanagement, instead of addressing them directly.

“Central Bank data shows that Kenya’s public debt currently stands at over Ksh.12.1 trillion. In just the past three years, the government has borrowed more than Ksh.3.5 trillion, according to Treasury data," he said.

The lawmaker further broke down the burden, saying: “Kenya is now borrowing Ksh.3.4 billion every single day or Ksh.140 million per hour. Simply, Ksh.2.4 million per minute, both day and night, every day. Out of that, the Kenyan debt is now over Ksh.12.1 trillion. This is besides the Ksh.175 billion borrowed through securitisation of the Fuel Levy and the Ksh.45 billion Talanta Bond.”

He added: "And every single day, when the lights go off, every day, every single day, Kenya is borrowing Ksh.3.4 billion every day."

The MP expressed concern that new securitised bonds and deals backed by road levies are being pursued without adequate Parliamentary oversight, effectively locking the country into long-term financial obligations through the back door.

He noted that the rate of borrowing is unsustainable, highlighting that Kenya has borrowed three times in three years what former President Mwai Kibaki borrowed throughout his tenure.

'We have borrowed three times what Kibaki borrowed in ten years. That’s the money Kenya has borrowed in the last three years alone. And in that money, I have not included other debts that Kenya has now become adept at borrowing in the name of something called securitisation," noted Nyoro.

“Let us serve our country with dedication. And let us not seek to give good narratives out there when the Kenyan economy is actually being jacked down or torn down."

Proponents of securitisation argue that it helps unlock much-needed funding for stalled infrastructure projects such as roads and solar electrification without adding to the headline debt.

However, critics warn that securitisation still mortgages future public revenues and risks undermining fiscal transparency.