Kiharu MP Ndindi Nyoro has cautioned that Kenya risks falling into a financial crisis similar to Senegal’s if the government continues to engage in what he describes as “off-the-book” borrowing.
In a statement shared on X, Nyoro drew lessons from Senegal’s recent revelation that the previous administration of President Macky Sall had taken out approximately $13 billion in undisclosed loans. According to Nyoro, this situation has left Senegal’s new leadership under President Diomaye Faye and Prime Minister Ousmane Sonko grappling with a debt crisis that threatens the country’s stability.
Nyoro warned that Kenya appears to be following a similar path. He said the country’s official public debt now stands at over KSh 12.5 trillion, yet the government continues to borrow between KSh 3.5 billion and KSh 4 billion daily, excluding loans taken to service existing debt.
The MP alleged that beyond these mainstream loans, the Kenyan government has started contracting “secret” debts through various state-controlled funds and levies without proper public disclosure or parliamentary oversight.
He pointed out several examples of this alleged off-the-book borrowing, including the securitisation of the fuel levy, through which the government has already borrowed KSh 175 billion and plans to take another KSh 100 billion.
Nyoro also mentioned the Talanta Hela bond, where the government reportedly borrowed KSh 44.5 billion against future revenues from the Sports Fund, warning that the interest on this loan alone could amount to KSh 100 billion over 15 years.
He further cited plans to use the Tourism Fund and Housing Levy in similar arrangements, including a proposed KSh 400 billion loan secured by future housing levy collections.
According to Nyoro, the National Treasury is also planning an Infrastructure Fund, which could become another vehicle for undisclosed borrowing.
He described the practice of creating funds, imposing levies, and then using them as collateral to borrow as “illegal and unsustainable,” adding that it ties up future national revenue and limits fiscal flexibility.
“All these funds are government-owned, and if they fail to repay, taxpayers will bear the burden,” he said.
Nyoro urged the government to adopt transparent and responsible borrowing practices to avoid what he termed an impending financial catastrophe.
“If we do not act differently, we risk mortgaging the future of our country. We are African, and Africa is our business.”
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