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| MP Ndindi Nyoro. Photo/Coutersy. |
Kiharu Member of Parliament Ndindi Nyoro has raised alarm over the government’s increasing reliance on securitisation, warning that it amounts to hidden borrowing that risks burdening future generations.
Speaking at a business expo in Nyeri County, the legislator questioned the logic of securitising fuel levies and road maintenance funds to borrow up to Ksh.100 billion every month.
“Central Bank data shows that Kenya’s public debt currently stands at over Ksh.12.1 trillion. In just the past three years, the government has borrowed more than Ksh.3.5 trillion, according to Treasury data,” Nyoro said.
Daily Borrowing Breakdown
The MP broke down the debt figures, noting that:
- Kenya borrows Ksh.3.4 billion daily
- Equivalent to Ksh.140 million per hour
- Or Ksh.2.4 million per minute
He added that besides the Ksh.12.1 trillion debt, the country has borrowed Ksh.175 billion through securitisation of the Fuel Levy and Ksh.45 billion via the Talanta Bond.
“And every single day, when the lights go off, Kenya is borrowing Ksh.3.4 billion,” he emphasised.
Oversight Concerns
Nyoro cautioned that securitised bonds and deals backed by road levies are being pursued without adequate Parliamentary oversight, effectively committing the country to long-term financial obligations “through the back door.”
He argued that the pace of borrowing is unsustainable, highlighting that in just three years, Kenya has borrowed three times more than what former President Mwai Kibaki borrowed in his entire 10-year tenure.
“We have borrowed three times what Kibaki borrowed in ten years. And in that money, I have not included other debts Kenya has now become adept at borrowing in the name of something called securitisation,” he noted.
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