Patmoz
By Njeri Irungu
Nairobi, 15/09/2025 – Kiharu Member of Parliament Ndindi Nyoro has issued a stark warning over Kenya’s escalating public debt, stating that excessive government borrowing is “crowding out” the private sector and crippling economic growth.
The legislator, who recently stepped down from his influential role as Chair of the Parliamentary Budget Committee, stated that his new position allows him to speak more candidly about the nation’s fiscal challenges.
In a press briefing on Tuesday, Nyoro took aim at the government’s aggressive domestic borrowing strategy. He argued that it siphons crucial capital from commercial banks that would otherwise be lent to businesses and industries, starving the productive sector of the funds needed to expand and create jobs.
“The government comes to the domestic market for money that could have gone to industries to boost production. Banks prefer lending to the government for higher returns, leaving the private sector struggling. This is crowding out and causing harm to the economy,” Nyoro stated.
He directly questioned the necessity of Kenya’s Sh4.2 trillion national budget, suggesting that a significant portion of the borrowing fueling it is driven by political expediency rather than genuine development needs.
“Many times we borrow money we don’t actually need,” he asserted. “Kenyans should scrutinize the budget and see how much is lost in political management.” He pointed to excessive funding for political projects and stalled ventures as examples of wasteful allocations that ultimately burden the taxpayer.
Shifting to the government’s privatization drive, the MP offered conditional support, framing it as a potential economic game-changer if executed correctly. He emphasized that the process must be transparent and free from vested interests to gain public trust and achieve its intended goals.
“Privatization is good when free from vested interests. The challenge in Kenya is a trust deficit,” Nyoro explained. “Our stock market undervalues companies, not because they are weak, but because people lack trust.”
Citing Zambia as a positive example where leaders of successful privatization reforms later ascended to the presidency, Nyoro underscored the long-term national value of such programs.
To ensure fairness, he proposed a model that prioritizes ordinary Kenyans, suggesting share offerings be structured with clear limits to prevent political insiders and powerful investors from dominating the process and acquiring public assets at undervalued prices.
The Kiharu MP concluded that Kenya’s path to escaping its debt trap hinges on a strict adherence to fiscal discipline and unwavering transparency in its economic reforms.
“The principles of fiscal discipline, transparency, and fairness in privatization will determine whether Kenya escapes its debt trap or sinks deeper into economic strain,” Nyoro insisted.
Shadrack Nyakoe
