By Eddah Waithaka
Kiharu Member of Parliament Ndindi Nyoro is issuing a stark warning, declaring that Kenya’s aggressive public borrowing is crippling economic growth by “crowding out” the private sector.
The legislator, who recently stepped down as Chair of the Parliamentary Budget Committee, says his new position now allows him to speak more candidly about the nation’s fiscal challenges.
In a Tuesday press briefing, Nyoro targeted the government’s domestic borrowing strategy. He argued that it siphons crucial capital from commercial banks, starving businesses and industries of the funds they need to expand and create jobs.
“The government takes money from the domestic market that could have gone to industries to boost production,” Nyoro stated.
“Banks prefer lending to the government for higher returns, which leaves the private sector struggling. This crowding out is harming our economy.”
He directly questioned the necessity of Kenya’s Sh4.2 trillion national budget, suggesting political expediency, not development needs, drives much of the borrowing.
“We often borrow money we don’t actually need,” he asserted. “Kenyans must scrutinize the budget and see how much we lose in political management.”
He pointed to excessive funding for political projects and stalled ventures as wasteful allocations that burden taxpayers.On the government’s privatization drive, the MP offered conditional support.
He framed it as a potential economic game-changer but insisted the process must be transparent and free from vested interests to gain public trust.”Privatization works when it is 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’s successful reforms, he underscored the long-term national value of such programs.
To ensure fairness, he proposed a model that prioritizes ordinary Kenyans through share offerings with clear limits.
This would prevent political insiders and powerful investors from dominating the process and acquiring public assets at undervalued prices.
Nyoro concluded that Kenya’s escape from its debt trap hinges on strict fiscal discipline and unwavering transparency in all economic reforms.”
Fiscal discipline, transparency, and fairness in privatization will determine whether Kenya escapes its debt trap or sinks deeper into economic strain,” he insisted.
