Kiharu Member of Parliament Ndindi Nyoro has come out against the National Infrastructure Fund, which President William Ruto signed into law on Monday. Nyoro warned that the fund might simply trigger more borrowing rather than driving real development, potentially exacerbating the existing financial burden on citizens and leading to increased taxes or reduced public services.
During the opening of the new Mwai Kibaki Senior School in Gaturi Ward, Nyoro pointed out that Kenya already borrows roughly Ksh 1.5 trillion every year. He cautioned that this mounting debt places an even heavier financial weight on ordinary citizens.
Nyoro criticized the new fund, suggesting it provides a loophole for the government to take on loans outside the standard budget, which could exacerbate the existing debt crisis and further burden ordinary citizens with increased financial obligations.
“As we talk, Kenya is borrowing about Ksh.1.5 trillion… hii kizungu mingi tunapewa ati for every Ksh. 1 Kenya wants to crowd in another Ksh. 12; it is another name for saying for every Ksh. 1 Kenya wants to borrow another Ksh.12,” he said.
He urged the government to stop overborrowing to protect both current and future generations from debt.
Nyoro faulted government-allied leaders, warning that the country risks sinking under unsustainable debt.
“To our leaders, who has told you that Kenya is going anywhere such that you want it to carry the debt burden mpaka ivunjike? Yes, we want development now, but we also want it in posterity,” he added.
The MP also lamented that low funding has already crippled social investments like education. He questioned why the government would introduce a new financing structure when the existing national budget and traditional mechanisms can still fund development projects.
“The fund that was launched yesterday is simply another way of borrowing money off the books,” he said.
The government launched the Ksh 5 trillion National Infrastructure Fund to mobilize capital for major projects like roads and airports. Officials compared the model to sovereign wealth funds in the United Arab Emirates, Australia, and Singapore. These nations typically use strong national reserves to invest in strategic assets for long-term returns.
However, Nyoro argued that this comparison makes little sense for Kenya. He noted that those countries created their funds using surplus wealth to invest globally, whereas Kenya’s version acts as a tool for raising more debt. He warned that this structure simply creates more financial obligations for 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. It is not good to continue burdening Kenyans now and still burden them tomorrow. Let’s stop overborrowing,” he said.
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