Nairobi, November 19- Former Budget Committee Chairperson and Kiharu MP, Hon. Ndindi Nyoro, delivered a detailed address on Kenya’s economy, public debt, and fiscal policy during the 42nd Annual Seminar Edition 2 in Mombasa today.
Nyoro provided a comprehensive review of Kenya’s debt trajectory across successive administrations, warning that rising off-budget borrowing and securitization of key revenue streams pose significant risks to transparency and future economic stability.
He noted that Kenya’s current legal public debt stands at KSh 12.5 trillion, up from KSh 8.7 trillion in 2022, meaning the country is borrowing approximately KSh 1.25 trillion annually — the highest rate in the nation’s history.
Highlighting Kenya’s economic performance, Nyoro pointed out that GDP growth in 2024 averaged 4.7%, lagging behind regional neighbors such as Uganda, Tanzania, Rwanda, and Ethiopia. He urged policymakers to focus on stimulating real productivity rather than relying heavily on domestic borrowing.
Nyoro also questioned the allocation of borrowed funds and tax revenues, noting that many flagship projects—including the NYOTA program, Smart City initiative, road expansions, and Talanta Stadium—are funded by external partners or through off-budget arrangements, rather than through Kenya’s official budget.
He called for prudent fiscal management, cautioning that misaligned policies and escalating debt obligations could hinder private sector growth and place heavy constraints on future administrations.
He also Stated that no illegal loans, securitization, or secret bonds were approved while he was in office
