MP Nyoro to State: Stem borrowing, find alternative means of raising revenue

Kiharu MP Ndindi Nyoro addressing residents at Ihura stadium in Murang'a town/ALICE WAITHERA

Kiharu MP Ndindi Nyoro has challenged the Kenya Kwanza government to find alternative means of raising revenue other than external borrowing.

The MP has raised concerns that the country is in a crisis in terms of debt management, as a huge proportion of government revenue is being channeled towards debts, and called on the government to stem borrowing.

The MP said this even as President William Ruto cemented ties with China in a visit in which he bagged investment deals worth over Sh107 billion from Chinese firms.

The country’s debt has risen to Sh11.02 trillion, up from Sh2 trillion in 2013.

But Nyoro has noted that his sentiments should not be construed as condemnation of government officials but as the concerns of a Kenyan.

“When a Kenyan raises an issue, it’s not necessarily to put people on their defense, it’s raising concerns to those making decisions in the government,” he said.

Speaking at Ihura Stadium during the graduation of 1,200 youths who were trained on free technical skills by the NGCDF, Nyoro underscored the need for the government to prudently manage the debts to prevent a situation where the country is unable to repay them.

“Debts are a great threat to our economy, and I believe there are other, better ways of managing the resources without overburdening Kenyans."

Ndindi, who formerly chaired the budget and appropriation committee in the National Assembly, said the government has numerous assets that it can offload to raise revenue without needing to borrow.

The high debt burden, he noted, will be carried by the current generation and be transferred to the future generations.

“Let’s look for other ways of raising revenue because if we continue borrowing, we will be living under the threat of defaulting and overburdening Kenyans. Their effects are catastrophic. I am saying as a Kenyan because when the nation goes wrong, it’ll be bad for all of us as Kenyans.”

“These are things I kept talking about even when I was in my former position. If you check the Hansard, you will confirm this.”

Data from the Central Bank of Kenya shows that as of December 2024, Kenya owed Sh10.9 trillion, out of which about 54 percent was domestic while 46 per cent was external.

Last week, the MP who was speaking at the Institute of Public Finance said the government may be required to use up to Sh1 trillion in the next finance year to pay debts.

He said, based on the current trends, Sh750 billion will be channeled towards domestic debts while Sh200 billion will be spent on external debt repayments.