Kiharu MP Ndindi Nyoro yesterday  castigated the government’s move to use pension funds for development.

Ndindi, the former chairperson of the parliamentary budget committee, said  the government is making a big mistake by investing money from the National Social Security Fund (NSSF)  in infrastructure, which has minimal returns.

Speaking during a public forum to discuss development projects with the locals, Ndindi said the move is just another scandal that is brewing.

“The NSSF kitty should be invested in a project with optimal returns. Infrastructure is not one of them and in my opinion, this is a bad financial decision,” he said.

He said that the government has borrowed extensively until it has nowhere else to go.

Ndindi said the administration is too lazy to come up with ways to revive the economy and it’s just looking for a simple way out, warning that this will have far-reaching effects on the financial stability of the country.

“Vivil servants’ money should not be used in such a manner because the government has the responsibility of creating a conducive environment for economic growth so that it can generate more revenue,” remarked the MP.

“If infrastructure development was such a lucrative sector, all the private sectors would have invested there because of the high returns,” he added.

Financial burden

Further, Ndindi claimed that the government has been borrowing under securitisation and the money is not on record.

He said already, the government has borrowed Sh175 billion for fuel levy without the approval of Parliament.

“The government will pay double the amount which is further adding to the financial burden that the country already has,” said Ndindi.

“The government should exercise prudent utilisation of resources and go slow on borrowing to avoid getting deeper into debts because it might take such a long time to recover,” he added.

Ndindi defended the National Government Constituency Development Fund (NG-CDF), saying it should be entrenched in the constitution.

Ndindi said the kitty has ensured development in all parts of the country.

Ndindi proposed that the funds be increased instead of being scrapped off.

He said the debate to do away with the fund is because of scarcity of resources but the government should explore ways to grow its wealth so that there is enough for distrusting .

He said much of the development in the constituencies have been achieved through the kitty.

He singled out the bursary programme which he said has benefited thousands of learners who would have been locked out of the classroom due to lack of fees.

“Here in Kiharu we have established several schools from scratch and the students are able to access education at a lesser fee of Sh1, 000 per term” he said.

“When making judgment around an issue like the NG-CDF, it is good we consider the legalese around it but also look at the impact it has created.”

The legislator said the government should make use of its assets to generate money instead of borrowing, driving the country into deeper debts.