Kiharu Member of Parliament Ndindi Nyoro has lifted the lid on what he has described as massive "off the books" government borrowing tied to, among other things, the upcoming Talanta Stadium along Ngong Road.
Nyoro, who has developed a knack for exposing malpractice within government spending since he was ousted as Budget Committee chair, sensationally claimed the project would cost Kenyan taxpayers a staggering Ksh145 billion.
The lawmaker argued that the country's debt position was far more severe than what government reports suggest, warning that the true debt-to-GDP ratio was well over 70 per cent.
This, according to Nyoro, was largely due to the government's tendency to borrow funds "off the books".
"The economy of Kenya is projected to be around Ksh 16.9 trillion. The debt in Kenya is around 12.5 trillion. So when we talk about the debt-to-GDP ratio, we must never massage the denominator. It is over 70 per cent debt-to-GDP ratio," Nyoro said during the 42nd Annual Seminar Edition II of the Institute of Certified Public Accountants of Kenya (ICPAK), Mombasa.
Among the projects whose funds were borrowed from official Treasury debt records, according to Nyoro, was the Ksh45 billion meant to facilitate the construction of the 60,000 capacity Talanta complex.
The MP claimed the funds servicing the stadium would be repaid through the Sports Fund, but the kicker was that the repayment plan required the State to remit Ksh500 million every month for 15 years.
He went on, “At the end of 15 years, from a debt of Ksh45 billion, Kenya will pay interest of Ksh100 billion. So the total cost of the Talanta Stadium will be Ksh145 billion.”
Beyond the official public debt of Ksh12.5 trillion, Nyoro claimed the government was taking on concealed obligations through mechanisms such as securitisations and bank-backed advances tied to fuel levy collections.
Nyoro further reiterated that while he was not opposed to government borrowing, there was a need for financial transparency.
As far as the Talanta stadium is concerned, Sports Cabinet Secretary Salim Mvurya, earlier this wee,k revealed it was more than 65 per cent done.
The CS claimed external works are expected to be done by December, while the facility is expected to be ready by February 2026.
