MP Ndindi Nyoro has criticised the national government’s launch of the Sh5 trillion National Infrastructure Fund. He said the initiative could enable borrowing outside the official national budget.
Speaking in Gakurwe, Kiharu Constituency, Nyoro said the fund allows the government to borrow “off-the-books.” He added that many Kenyans are already struggling with declining incomes and high living costs.
Rising Borrowing Levels
The legislator noted that Kenya’s borrowing has surged in recent years, increasing economic pressure and affecting future generations. According to him, the government borrows about Sh1.5 trillion annually, roughly Sh4 billion each day.
Nyoro questioned the need for a new financing structure when development projects can be funded through the existing national budget. He argued that conventional financing mechanisms remain sufficient for current infrastructure needs.
Fund Risks Increasing Debt
“The fund that was launched yesterday is simply another way of borrowing money off the books,” Nyoro said. He warned that the fund risks saddling taxpayers with additional financial obligations.
The government launched the National Infrastructure Fund to mobilize financing for roads, airports, and other major developments. It aims to attract private capital and international investment, expanding infrastructure financing beyond budget allocations.
The government compared the fund to sovereign investment funds used in countries such as the UAE, Australia, and Singapore. Nyoro argued this comparison may not apply to Kenya, as such funds are usually created by wealthy countries to invest surplus reserves globally.
“That is a contradiction,” Nyoro said. “Those countries created funds after economic growth to invest for the future. Our fund seeks to borrow more outside the budget.”
Lessons from History
Nyoro warned that continued borrowing could threaten long-term economic stability. He compared current trends with former President Mwai Kibaki’s tenure, when the government borrowed about Sh1.2 trillion over ten years.
He made the remarks during the launch of Mwai Kibaki Secondary School, built through the Kiharu NG-CDF. Nyoro said the institution honors the late president’s role in expanding Kenya’s economy and access to education.
Nyoro urged caution in managing debt to avoid overburdening current and future generations. He emphasized that Kenya must prioritize fiscal responsibility while financing critical infrastructure.
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