Kenya’s public debt management has once again come under scrutiny, by Parliament’s former Budget chair.
Kiharu MP Ndindi Nyoro criticised the government’s growing reliance on securitisation, describing it as “borrowing by another name” that risks saddling future generations with unsustainable liabilities.
Speaking at a business expo in Nyeri County, Nyoro questioned the logic behind securitising fuel levies and road maintenance funds to borrow up to Sh100 billion each month.
He argued that securitisation bypasses parliamentary oversight and locks the country into long-term financial commitments without addressing underlying fiscal mismanagement.
Citing Central Bank and Treasury data, the legislator noted that Kenya’s public debt has risen to Sh12.1 trillion, with Sh3.5 trillion borrowed in just the past three years.
He broke down the figures to illustrate the weight of the burden: Kenya is borrowing Sh3.4 billion daily, Sh140 million every hour, or Sh2.4 million every minute.
Nyoro contrasted this with the record of former president Mwai Kibaki, saying the current administration has borrowed three times more in three years than Kibaki did during his entire decade in office.
His remarks come as Treasury Cabinet Secretary John Mbadi reported that Kenya’s debt-to-GDP ratio had declined from 71.9 percent in June 2022 to 66.7 percent by June 2024.
Mbadi attributed the improvement to tighter spending, tax reforms, and measures to stimulate growth.
International rating agencies have also taken note of recent progress. S&P upgraded Kenya’s rating to B with a stable outlook in August, citing stronger foreign exchange reserves.
Fitch has maintained a B- stable rating, while Moody’s rates Kenya at Caa1, having recently shifted the outlook from positive to stable.
President William Ruto has defended his administration’s record, stressing that Kenya has avoided default despite being listed among high-risk countries. He pointed out that of six African states predicted to default, five did so while Kenya honoured its obligations.
Ruto credited fiscal discipline, a stronger shilling, improved inflation rates, and recognition by the IMF as Africa’s sixth-largest economy as signs of stability.
The contrasting positions highlight a growing debate over Kenya’s debt strategy. While the government insists the country is on a path of resilience, critics warn that new borrowing methods risk storing up deeper problems for the future.
