Ndindi Nyoro warns govt’s Ksh5T development fund is a debt trap
By Wangari Njuguna, December 16, 2025Kiharu member of parliament Ndindi Nyoro, has castigated the move by the government to establish a Ksh 5 trillion fund, saying it’s another form of borrowing that’s meant to exploit Kenyans more.
Ndindi said that by setting up the fund, the government is trying to run away from the huge loans already borrowed, and it’s now creating another avenue for more debts.
Speaking in Mathioya Murang’a during a funeral service of Beth Murray on Tuesday, December 16, 2025, the MP said the government should first of all account for all the money borrowed by showing to detail the projects implemented.
He claimed that since August 2022 to date, the Kenya Kwanza government has borrowed more than Ksh4 trillion, yet there is very little to show for it.
“This money is enough to cater for free basic education in primary and secondary schools and undertake major development projects in the country,” he remarked.
“The new fund that the government wants to establish is just another way of borrowing money, and the government is just twisting it in a different way to try to confuse the people,” Ndindi remarked.
He said that currently the national debt has accumulated to Ksh 13 trillion, and instead of the government looking for ways to settle this, it is adding more debts, which he said is not good for economic stability.
“This plan, if you ask me, I would call it a national irregular fund that the government want to use to overburden the people with more loans,” he added.
“I am asking very deliberate and direct questions that the government should account for the money borrowed by showing all the projects undertaken and how much has been spent in each before implementing this new plan,” remarked the MP.
The former parliamentary budget committee chair said he will continue putting the government in check and ensure that whenever he sees something not being done correctly.
He also urged the committee that oversees the debts in the country to come clean on the matter, claiming those involved in the plan are using financial technical terms to confuse the common person.
The cabinet approved the establishment of the fund to be used in implementing development projects in the next ten years.
Among the sources of funding targeted are proceeds from privatisation, domestic capital mobilisation, private sector investment and monetisation of mature public assets.
The key areas set to benefit from the fund include infrastructure, water, energy and agriculture.
The government argues that the fund will reduce reliance on public debts and taxes, and it will also ensure faster delivery of the projects.