Ndindi Nyoro warns Kenya going Senegal way as national debt burden expands
By Joel Masibo, October 25, 2025Kiharu Member of Parliament, Ndindi Nyoro, has warned that Kenya could go the way of Senegal, dealing with unregulated loans that will further stretch the national debt management.
Taking to X on Saturday morning, the Kiharu MP noted that Senegal is currently in turmoil over debt management. According to the lawmaker, the current Senegalese government led by President Diomaye Faye and PM Ousmane Sonko has learnt that the previous government led by President Macky Sall had borrowed around $13 billion (Ksh1.6 trillion) in secret loans, meaning the amount was not included in the mainstream debt book.
The legislator has gone ahead to warn that Kenya must, as a country, avoid falling into that kind of abyss.
”The national debt in Kenya is now over Ksh12.5 trillion. This is the loan book. We are borrowing Ksh3.5 billion to Ksh4 billion every day. I mean net borrowing. What is borrowed to pay previous loans is not included. Unfortunately, on top of this and besides the mainstream borrowing, the government is also borrowing for the first time, borrowing off the books without transparency,” Nyoro said.
Ndindi Nyoro’s explanation
He went ahead to reveal that the government has already borrowed Ksh 175 billion by offering as security the fuel levy that is to be collected for the next seven years. Ndindi Nyoro also said the process is underway for another over Ksh100 billion on the same.
”Talanta Bond – GoK borrowed through a bond of Ksh44.5 billion, offering as security money that is to be collected by the Sports Fund for the next 15 years. The interest alone for the Ksh 44.5 billion loan will be Ksh 100 billion after that period.”
“Tourism Fund: The fund is effectively also on the same line and path. Plans are underway to take around a Ksh400 billion loan by offering a housing levy that is to be collected in the next many years as security. Basically, collecting the Housing Levy in advance,” Nyoro added.
Impeding danger
Also, the Kiharu MP said that the National Treasury is also in the process of forming an “Infrastructure Fund”, which will also be a vehicle for borrowing more off the books.
“This is how it is working – create a fund, then institute levies, then use the history of the levy collected to borrow secretly from the book. This is illegal and also constrains the future flexibility of the country’s finances or funds.”
“All these funds and institutions are fully owned by the GoK. You cannot, therefore, treat loans taken by any of the government institutions differently, especially non-commercial institutions,” he added. Ndindi Nyoro stated that if the institutions are unable to pay the loans, the government will pay.