Ndindi Nyoro Sounds Alarm on Rising Debt, Pushes for Clean Privatization.
By Peace Muthoka.
Nairobi – Kiharu MP Ndindi Nyoro has warned that Kenya risks sinking deeper into a debt trap if borrowing continues unchecked, accusing the government of squeezing out private investors through excessive local loans.
Nyoro, who recently left his role in the budget committee, said the government’s appetite for domestic borrowing is hurting industries as banks prefer lending to the state for quick returns.
“When government takes money from the local market, industries are left struggling. This is crowding out and harming the economy,” he said.
He questioned the growing Sh4.2 trillion budget, arguing that much of the borrowing funds political projects rather than real development. “Many times we borrow money we don’t even need. Kenyans must check the budget and see how much is wasted on political management,” Nyoro added.
On privatization, the MP said it could boost the economy only if carried out transparently and free of vested interests. He warned that Kenya’s trust deficit risks undervaluing public assets, calling for a model that allows ordinary citizens to buy shares with strict limits to block political insiders from taking over.
“Privatization works when it is clean. The problem in Kenya is mistrust, and that’s why our stock market undervalues companies. The process must favor Kenyans, not just a few powerful people,” he said.
Nyoro insisted that fiscal discipline and fair privatization will decide whether the country breaks free from the debt trap or sinks further into crisis.
