Suba South MP Caroli Omondi has raised concerns about the government’s heavy borrowing from the market, warning that such moves could make it difficult for ordinary Kenyans to access loans.

He revealed that this year alone, the government plans to borrow Ksh480 billion, which could crowd out small borrowers such as local traders and small-scale entrepreneurs.

Speaking during a Monday morning discussion on a local TV station on August 18, 2025, Omondi highlighted the importance of affordable credit for the majority of Kenyans. He said that many small businesses, including women selling food or young men running small trading businesses, rely on small loans to sustain their livelihoods.

“In Nairobi, there is a food vendor, a single mother, who sells tea, bread and mandazi to support her family. She may only need Ksh5,000 as working capital,” Omondi explained. “Or a young man selling sugarcane on a wheelbarrow may need Ksh10,000. These people cannot compete for credit if the banks are lending heavily to the government instead.”

Women’s empowerment

Omondi also shared details of a women’s empowerment programme he started in Suba South over a year ago. The initiative encouraged women to form groups, save collectively through table banking, and open formal bank accounts. Those who performed well were later assisted with financial support. He revealed that the president contributed Ksh10 million to support these women’s groups.

While he praised such initiatives for helping communities earn a daily living, Omondi warned that they are not sustainable in the long term.

“If we want to lift people out of poverty, we must provide affordable credit that goes in a cycle–borrow, use, repay, and grow,” he said.

He stressed that government borrowing at this scale could prevent small borrowers from accessing necessary funds, limiting the impact of such empowerment programmes.

“This is a short-term measure. It may help someone earn a living, but it will not transform society,” Omondi added.

The MP’s comments come amid growing concerns about Kenya’s rising debt levels and the impact of government borrowing on the wider economy. While loans are necessary for development projects, excessive borrowing from commercial banks can limit credit availability for ordinary citizens and small businesses.

Omondi called for a balanced approach, where government borrowing does not crowd out the very people who need credit to sustain their livelihoods and grow their businesses.