Ndindi Nyoro Warns Govt Against Secret Borrowing, Cites Senegal’s Debt Crisis

Kiharu MP Ndindi Nyoro has warned that Kenya could face a major economic crisis if the government continues secret borrowing.

In a statement posted on his X account on Friday, October 24, 2025, Nyoro pointed to Senegal as a cautionary example. He said the new government there discovered that the previous administration had taken around $13 billion in hidden loans that were not included in the official debt records.

“Senegal is currently in turmoil in its debt management. Upon assuming office, the current government, led by President Diomaye Faye and PM Ousmane Sonko, realised that the previous government led by President Macky Sall had borrowed around $13 billion in secret loans off the books. Meaning the amount was not included in the mainstream debt book,” Nyoro stated.

He warned that Kenya must avoid making the same mistakes. The country’s official debt is now over Ksh12.5 trillion, and Nyoro said the government is borrowing between Ksh3.5 billion and Ksh4 billion every day just to cover old debts.

The MP also raised concerns about borrowing that is not recorded in official accounts. He said public funds and levies are being used as collateral for these off-the-books loans.

“Unfortunately, on top of this and besides the mainstream borrowing, the government is also for the first time borrowing off the books without transparency,” Nyoro said.

He highlighted several practices he considers risky and illegal. The government has borrowed Ksh 175 billion using future fuel levy collections as security, and another Ksh100 billion is reportedly being prepared under the same method.

Nyoro also mentioned the Ksh 44.5 billion Talanta Bond, which uses money from the Sports Fund as collateral. He warned that the interest alone could reach Ksh100 billion. The Tourism Fund and Housing Levy are also reportedly being used in similar ways.

The MP said plans are underway to borrow about Ksh 400 billion using the Housing Levy, while the Treasury is creating an “Infrastructure Fund” that could become another borrowing channel.

“This is how it is working: create a fund, then institute levies, then use the history of the levy collected to borrow secretly from the book,” he explained.

Nyoro added that these actions, aside from being illegal, limit the country’s financial flexibility in the future.

He stressed that all these funds belong to the government, meaning taxpayers will ultimately bear the burden if loans are not repaid.

“If the institutions are unable to pay, the government will pay. That’s why we must not do these kinds of implementations,” Nyoro said.

“Ramifications will definitely come. I hope sanity reigns and we avert a catastrophe by acting differently. We are African and Africa is our business,” he added.