Ndindi Nyoro raises red flag over rising hidden govt borrowing
By Ascah Mwango, October 25, 2025Kiharu Member of Parliament Ndindi Nyoro has warned the government against secret borrowing, saying the country is treading on dangerous ground that could lead to a major economic crisis.
In a detailed statement shared via his X account on Friday, October 24, 2025, Nyoro said Kenya risks following the same path as Senegal, where the new administration discovered that the previous government had taken massive loans off the books.
“Senegal is currently in turmoil in its debt management. Upon assuming office, the current government, led by President Diomaye Faye and PM Ousmane Sonko, realised that the previous government led by President Macky Sall had borrowed around $13 billion in secret loans off the books. Meaning the amount was not included in the mainstream debt book,” Nyoro stated.
He cautioned that Kenya must avoid falling into the same trap, noting that the country’s official debt now stands at over Ksh12.5 trillion.
“We are borrowing Ksh 3.5 billion to Ksh 4 billion every day. I mean net borrowing, what is borrowed to pay previous loans not included,” he explained.
According to the MP, the government has started borrowing outside official records, using public funds and levies as security for new loans.
“Unfortunately, on top of this and besides the mainstream borrowing, the government is also for the first time borrowing off the books without transparency,” he said.
Nyoro highlighted several ongoing borrowing practices that he said were illegal and dangerous for the country’s financial stability.
He claimed the government has already borrowed Ksh175 billion by offering the fuel levy to be collected over the next seven years as security, and another Ksh100 billion is being prepared under the same arrangement.
He also cited the Ksh44.5 billion Talanta Bond, which he said uses money from the Sports Fund as collateral.
“The interest alone for the Ksh 44.5 billion loan will be Ksh 100 billion after that period,” he said, adding that the Tourism Fund and Housing Levy are also being used similarly.
Nyoro further warned that plans are underway to borrow around Ksh400 billion using the Housing Levy as security and that the Treasury is forming an “Infrastructure Fund” that could be used as another borrowing vehicle.
“This is how it is working: create a fund, then institute levies, then use the history of the levy collected to borrow secretly off the book,” he explained.
Adding;
“This, while illegal, also constrains the future flexibility of the country’s finances.”
He stressed that all the funds being used for these loans are government-owned, meaning taxpayers will ultimately bear the burden if the institutions fail to repay.
“If the institutions are unable to pay, the government will pay. That’s why we must not do these kinds of implementations,” he warned.
Nyoro said Kenyans deserve to know the truth about the state of the country’s finances. “Ramifications will definitely come. I hope sanity reigns and we avert a catastrophe by acting differently. We are African and Africa is our business,” he added.
Borrowing appetite
The Kiharu legislator’s remarks come just days after he publicly criticised the government’s borrowing habits, accusing it of having taken loans worth more than Ksh1 trillion in the last eight months.
Speaking during the 25th-anniversary celebrations of the Christian Foundation Fellowship (CFF) in Murang’a on Saturday, October 11, Nyoro said the rate of borrowing is alarming and could cripple the economy.
“I have been talking about this issue of debt not because I have nothing else to say, but because there is no other critical issue in the country than the appetite for debt,” he said.
“I am a very worried Kenyan and leader because this is not about figures; it’s about the foundation of the country.”
Nyoro, who previously chaired the Parliamentary Budget Committee, accused the government of mismanaging public funds and failing to show results for the loans it continues to acquire.
“Former President, the late Mwai Kibaki, borrowed Ksh 1.2 trillion in the ten years he was in office, and we have a lot of projects we can see, like the superhighway. Yet this is the amount the government has borrowed in eight months,” he said.
He noted that nearly all the revenue collected is going into debt repayment, leaving little room for development. “Seventy-six per cent of our revenue is going into paying the debts, leaving very little for running the government and implementing projects,” he said.
“That is enough reason for anyone in government to be concerned that the rate of borrowing will drive the country into a crisis from which we might never recover,” he added.
Nyoro also faulted the government for taking on more expensive loans to repay old ones a practice known as refinancing, which he said worsens the debt situation.
“Officers from the National Treasury said they are managing the debts, but that’s not the case,” he said.
The MP further accused the government of politicising economic issues through empowerment programs and handouts meant to silence critics.
“What we are doing as a country is trying to cure economic problems with political management by giving out positions and money to silence the people,” he stated.
“We are lying to ourselves that we are finding a solution to our economy, but in reality, it’s only making things worse,” he warned.