Lawyer Willis Otieno has criticised the government’s borrowing model, warning that excessive public borrowing is choking the economy and denying businesses and individuals access to credit needed for growth and investment.

In a video shared on his account while speaking on Tuesday, May 26, 2026, Otieno argued that the country’s current borrowing pattern is no longer supporting development projects but is instead being used to sustain recurrent expenditure.

“The government is borrowing money not for development, but to eat. What is the catalyst of development in this country? We need to see people engaging in economic activities and the economy expanding,” Otieno stated.

He warned that the growing appetite for government borrowing is crowding out the private sector, making it increasingly difficult for businesses and ordinary Kenyans to access loans for investment and expansion.

Private sector squeezed

According to Otieno, commercial banks and financial institutions are increasingly prioritising lending to the government instead of businesses because government securities are considered safer and more profitable.

“The private sector cannot borrow, individuals cannot take projects because government is crowding them out of that space. They chase the private sector away when they go to borrow,” he said.

He maintained that sustainable economic growth can only be achieved when businesses are empowered to invest, create jobs and expand productive activities across the country.

Otieno further argued that the current economic model is placing a heavy burden on taxpayers through increased levies and taxes while offering little stimulation to the productive sectors of the economy.

Concerns over debt burden

The governance analyst also raised concern over the growing share of government revenue being directed towards debt repayment, warning that the trend is limiting public investment in development projects.

“We are spending too much of our revenue to pay debt while whatever little is being collected is being eaten instead of stimulating the economy,” he added.

He cautioned that the current model is unsustainable and risks weakening economic productivity if urgent reforms are not implemented.

Otieno further observed that economic expansion remains critical in improving government revenue collection, noting that taxation alone cannot sustain economic growth without increased business activity and investment.

“This model is not sustainable because you can only come to the sovereign if the sovereign is having money,” he stated.