Kenya’s fiscal policy is once again under fire, and this time, it’s Ndindi Nyoro leading the charge. The outspoken Kiharu MP and chair of the National Assembly’s Budget and Appropriations Committee didn’t mince words as he called out the National Treasury for what he described as reckless borrowing and misuse of pension funds.
In a scathing critique, Nyoro questioned the rationale behind recent loan agreements that he claims expose the country to unnecessary financial risk. He specifically warned against the use of pension funds—money meant for retirees—as a financial buffer for debt repayment and state bailouts.
Treasury’s Gamble: Risky Loans
Nyoro’s criticism follows the Treasury’s recent moves to secure new loans with reportedly high interest rates and unclear repayment terms. He termed the strategy “unsustainable,” highlighting concerns over Kenya’s already ballooning public debt, which now hovers near the Sh11 trillion mark.
“These are not just numbers. This is money we don’t have, that we’re borrowing under harsh terms, and we’re gambling the future of our country,” said Nyoro. He stressed that the loans are not only expensive but also misaligned with the country’s development priorities.
Pension Funds Misused?
But it’s the treatment of pension funds that sparked the strongest reaction. According to Nyoro, redirecting retirement savings to plug budget gaps is both unethical and shortsighted. “These funds belong to workers who have contributed over their lifetime. You don’t touch that money to fix bad policy decisions,” he said.
The Treasury had reportedly proposed leveraging pension schemes managed by public servants to ease fiscal pressure, but the plan has met stiff resistance. Critics argue that this puts retirees’ livelihoods at risk and could destabilize the entire pension system.
Long-Term Impact
Nyoro’s comments come at a critical time as Kenya faces scrutiny from international lenders and rating agencies. The continued reliance on external debt, especially under opaque terms, has raised concerns about Kenya’s creditworthiness and fiscal discipline.
Economists warn that the misuse of pension funds could trigger a broader crisis if confidence in retirement systems begins to wane. “Once that trust is broken, it’s hard to rebuild,” one Nairobi-based economist noted.
Political and Public Pressure Mounts
Nyoro’s remarks are likely to increase pressure on the Treasury and Cabinet Secretary Njuguna Ndung’u to offer transparency and reconsider current borrowing practices. As budget season looms, all eyes will be on Parliament to see whether these concerns translate into policy shifts.
Conclusion
Ndindi Nyoro’s warning isn’t just political posturing. It reflects growing anxiety over Kenya’s economic direction. Risky loans and the proposed use of pension funds are more than abstract policy debates—they’re decisions that affect millions of Kenyans today and in the future.
If the Treasury doesn’t reconsider its approach, the cost might be more than just numbers on a balance sheet—it could be the long-term financial stability of the nation.
