Ndindi Nyoro Sounds Alarm Over Kenya’s Rising Debt and Calls for Transparent Privatization
Speaking on the state of the economy, Nyoro cautioned that the government’s frequent borrowing from domestic markets is squeezing out industries that need credit to expand production.
“The government comes to the domestic market for money that could have gone to industries to boost production. Banks prefer lending to government for higher returns, leaving the private sector struggling. This is crowding out and causing harm to the economy,” he said.
Nyoro questioned the wisdom behind Kenya’s Sh4.2 trillion budget, arguing that much of the borrowing is driven by political interests rather than genuine development needs. He pointed to what he described as wasteful allocations tied to political projects and stalled ventures, which ultimately increase the burden on taxpayers.
“Many times we borrow money we don’t actually need. Kenyans should scrutinize the budget and see how much is lost in political management,” he noted.
On privatization, the MP said the policy could help unlock Kenya’s economic potential if implemented transparently. He cited Zambia’s experience, where leaders involved in privatization reforms later rose to the presidency, underscoring the long-term value of credible reforms.
“Privatization is good when free from vested interests. The challenge in Kenya is a trust deficit. Our stock market undervalues companies, not because they are weak, but because people lack trust,” he explained.
To restore confidence, Nyoro proposed that privatization be structured to prioritize ordinary Kenyans by allowing them to purchase shares under clear limits, preventing powerful insiders from capturing public assets.
He insisted that fiscal discipline, transparency, and fairness in both borrowing and privatization will determine whether Kenya escapes its growing debt trap or plunges deeper into economic distress.
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