Nyoro: New infrastructure fund will open door to more borrowing

Kiharu MP Ndindi Nyoro at Gakurwe comprehensive school on March 10, 2026/ ALICE WAITHERA

MP Ndindi Nyoro has criticised the national government’s decision to launch the National Infrastructure Fund, warning that the initiative will open the door for additional borrowing outside the official national budget.

Speaking in Gakurwe, Kiharu Constituency, Nyoro said the fund will allow the government to engage in what he described as “off-the-books” borrowing at a time when many Kenyans are already grappling with declining incomes and a high cost of living.

The legislator argued that Kenya’s borrowing levels have risen sharply in recent years, placing increasing pressure on the economy and future generations.

According to him, the government is currently borrowing about Sh1.5 trillion annually, an amount he said translates to roughly Sh4 billion every day.

Nyoro questioned the rationale behind introducing a new financing structure when development projects can still be funded through the existing national budget and conventional financing mechanisms.

“The fund that was launched yesterday is simply another way of borrowing money off the books,” he said.

The Sh5 trillion National Infrastructure Fund was launched by the government as a vehicle to mobilize financing for major infrastructure projects including roads, airports and other large-scale developments.

The fund is intended to attract private capital and international investment, with the aim of expanding infrastructure financing beyond traditional budget allocations.

The government has also compared the model to sovereign investment funds used in countries such as the United Arab Emirates, Australia and Singapore.

These funds, often backed by strong national reserves, are used to invest in strategic assets and generate long-term returns for future generations.

However, Nyoro argued that the comparison may not be appropriate in Kenya’s case. According to him, such funds are typically created by countries with surplus wealth that they invest globally, rather than as mechanisms for raising additional debt.

He said Kenya risks creating a structure that ultimately increases borrowing while placing additional financial obligations on taxpayers.

“That is a contradiction. Those countries created such funds after their economies had grown, to invest for the future. But the fund that was launched yesterday is meant to borrow more money outside the budget,” he said.

Nyoro warned that continued heavy borrowing could undermine Kenya’s long-term economic stability and saddle future generations with a significant debt burden if not managed carefully.

“It is not right for us to continue burdening Kenyans today and also burden future generations,” he said, adding that the country should exercise caution in expanding its debt levels.

The MP also compared the current borrowing trends with those witnessed during the presidency of the late Mwai Kibaki, arguing that the pace of debt accumulation has increased significantly in recent years.

According to Nyoro, the former president borrowed approximately Sh1.2 trillion over his entire ten-year tenure in office.

Nyoro made the remarks during the launch of Mwai Kibaki Secondary School, a new institution constructed through the Kiharu National Government Constituencies Development Fund (NG-CDF).

Nyoro said the institution was named after the late president in recognition of his role in transforming Kenya’s economy and expanding access to education.

He credited Kibaki’s administration with laying the groundwork for several major development initiatives, including the introduction of free primary education, expansion of the national road network and increased electrification across rural areas.

Nyoro said such policies helped improve livelihoods and strengthened the country’s economic foundation.