Kiharu Member of Parliament, Ndindi Nyoro, has alleged that President William Ruto is borrowing 10 times more compared to former President Mwai Kibaki, warning that this might lead Kenya to a debt crisis.
Speaking on Wednesday, Nyoro compared President Ruto's borrowing to that of former President Kibaki, revealing that while Kibaki borrowed during his tenure, development could be seen, which is different from Ruto's case.
''The entire reign of former President Mwai Kibaki, he found the country's debt at Ksh600 billion, then left it at approximately Ksh1.8 trillion, meaning the entire 10 years, he borrowed just around Ksh1.2 trillion, the amount Kenya is now borrowing, every week,'' Nyoro revealed.
Nyoro argues that Kenya's development under Ruto should be tenfold compared to the progress achieved during Kibaki's era. He points out that despite borrowing significantly more, Ruto's administration has not matched Kibaki's accomplishments in terms of tangible development outcomes.
''In his 10 years, we saw mega developmental projects like the Thika Super Highway and the construction of major roads, and so, if we are borrowing at the same level that Kibaki borrowed for 10 years, then we must be seeing development every single year in Kenya,'' Nyoro emphasized.
This is not the first time Nyoro has warned Kenya about its debt. The former chairperson of the Budget Committee National Assembly previously warned that Kenya was at risk of joining Africa’s growing list of defaulters.
Nyoro alleged that the public debt—now estimated at Ksh11 trillion—is spiralling out of control, and any move to renegotiate it could trigger even worse economic fallout.
The MP claimed that it was a matter of when, not if, the Ruto administration would default on its debt, pouring cold water on celebrations over the repayment of the 2014 Ksh72 billion Eurobond loan, which was cleared using part of a Ksh156 billion World Bank loan.
“I saw headlines of the government in jubilation that we were able to repay our Eurobond loan. The reality is you retire a debt of six per cent interest with a debt of ten per cent. It is like taking a loan from a shylock and you celebrate. If we are not prudent, we will have a big problem with our debt,” he said.
Meanwhile, Treasury CS John Mbadi assured Kenyans that the country is on the right trajectory when it comes to debt payment, alleging that China, the country's biggest lender, was happy with the payment rate and even committed to offering more loans.
“What we are discussing largely is how we have performed in terms of paying our debt, which China agrees Kenya has done exceptionally well, better than any other country in the region,” Mbadi said after Ruto visited China last week.
Mbadi revealed that Kenya is working to expand its fiscal space to facilitate new projects with China, particularly those aimed at driving economic growth.
