Nyoro Tears Into Budget, Debt And Spending During House Debate
News Updated: 03 June 2026 19:53 EAT
Kiharu Member of Parliament Ndindi Nyoro speaking during the parliamentary Session to address issues surrounding the welfare of the citizens
Kiharu MP Ndindi Nyoro launched a scathing critique of the government's fiscal direction during debate on the 2026/27 Budget Estimates, warning that Kenya is pursuing an unsustainable path marked by rising debt, growing expenditure and slowing economic growth. The former Budget and Appropriations Committee chair argued that fiscal policy decisions, rather than minor parliamentary amendments, determine the country's economic future.
"I know as Honorable put it, the budget of the country, the relevant committee actually makes changes less than 1% of it and therefore the entirety of it and where the meat is, is not up out of the minimal changes that are made in parliament but out of our fiscal policy. Honorable Speaker, we are currently debating a budget of around 4.89 trillion Kenya shillings, meaning we are almost going to 5 trillion. Probably even by the time you are debating the Appropriations Bill, maybe you'll be increasing around 5 trillion Kenya shillings, Honorable Speaker. This is unprecedented, but of note is that we are making an ordinary budget for extraordinary times."
Nyoro told lawmakers that while monetary policy plays an important role in maintaining stability in inflation, employment and exchange rates, the real transformation of an economy comes through fiscal policy. He said decisions on taxation, expenditure, borrowing and revenue mobilisation have far-reaching consequences on the lives of citizens.
"Honorable Speaker, the country does several interventions in terms of growing the economy. One is on the monetary policy which mainly is based on stability, stability in the employment sector, inflation, and exchange rate. But the more far-reaching intervention that is done by any government, which Kenyan government should do, has been done by other governments, is a fiscal policy, and fiscal policy is anything about budget raising revenue, raising measures, debt, and anything else in between."
The MP expressed concern over Kenya's debt trajectory, describing the current fiscal deficit as historically high at the beginning of a financial year. He argued that the country's debt burden has reached unprecedented levels and called for a national conversation on the sustainability of continued borrowing.
"Honorable Speaker, it is mind-boggling that the current fiscal deficit is actually the highest we have ever had at the beginning of the financial year. Currently, Kenya has borrowed in excess of 13 trillion Kenya shillings. I know this even sounds like an abnormal figure, that the current national debt is in excess of 13 trillion Kenya shillings. But how has the graph been? President Kibaki's time, it moved from 600 billion to around 1.1 trillion Kenya shillings, meaning he borrowed around 1.1 to 1.2 trillion in his entire 10 years."
Nyoro compared borrowing under different administrations, claiming that debt accumulation has accelerated sharply in recent years. He suggested that the pace at which new loans are being contracted risks setting undesirable records and placing a heavier burden on future generations.
"From 2013 coming to 2022, the national debt moved from around 1.7 or 1.8 trillion to around 8.7, meaning we borrowed around 7 trillion in the 10 years. But Honorable Speaker, currently the national debt has moved from 2022 to date by more than is actually going to 4.5 trillion Kenya shillings. It seems there is a rush, that one of the targets the government is aiming to actually break is to go on record as to be the one that borrowed the most within the shortest time possible."
The legislator further argued that the country's daily borrowing rate remains alarming and warned that increasing debt levels could constrain future development spending if not addressed through prudent fiscal management.
"Honorable Speaker, currently we are borrowing 4 billion Kenya shillings every day. 4 billion including today, and this is in net terms, meaning refinancing or the money borrowed to pay the previous loans are actually not included."
On education, Nyoro urged Parliament to ensure all Junior Secondary School teachers currently serving on internship terms are absorbed into permanent and pensionable employment from the start of the next financial year. He said thousands of teachers are looking to lawmakers for a decisive solution.
"Our brothers and sisters currently volunteering as JSS teachers in turns are looking at us debating in this house and they expect nothing short of us, Honorable Speaker, passing our budget that will confirm all of them, the 44,000 of them, into permanent and pensionable terms, and not from January, Honorable Speaker, of next year, but from July of this year when the financial year starts."
The MP also raised concerns over delays in payments to examination markers and a persistent shortfall in school capitation funding, warning that the education sector remains under significant financial strain despite its critical role in national development.
"We cannot continue to subject our brothers and sisters to this kind of working condition. The other thing, Honorable Speaker, is in terms of the people who marked our exams are yet to receive their remunerations. The other thing is capitation as we debate here, and the more reason I talked about fiscal deficit which is 5.5%, that we are debating here knowingly that the capitation budget in Kenya as we are proposing today is short of 50 billion Kenya shillings."
Nyoro also championed improved welfare for village elders, saying they remain underpaid despite playing a crucial role in maintaining security and resolving disputes at the grassroots level. He called for a substantial increase in their monthly stipend.
"There is something about village elders. Honorable Speaker, village elders deserve more than 3,000 Kenya shillings. This is an issue we have debated ever since and it wasn't done then because there was no framework. The framework came about last year, Honorable Speaker, and out of the participations that we had done, we expect the village elders to get at the very least 8,000 Kenya shillings Honorable Speaker, per month, to reward them for the good work they do in terms of our security."
Turning to economic performance, Nyoro argued that Kenya is losing its position as a regional economic powerhouse and warned that growth projections point to increasing competition from neighbouring countries that are recording stronger expansion rates.
"As we talk about these specifics, it is important that we know that our fiscal policy has a direct ramification on what Kenya becomes. As we talk about this budget today, Honorable Speaker, the once giant, economic giant of the region is now sliding, that now Kenya has slid to number seven largest economy in Africa from number six, Honorable Speaker. That even in this current year, the projections are that Kenya will grow slower."
The Kiharu MP cited economic data from neighbouring countries to support his argument, saying regional competitors are growing faster and benefiting from policies that encourage investment and productivity.
"In the year 2025, of all our regional neighbors, Honorable Speaker, the Kenyan economy grew the slowest. Tanzania with elections, they grew by around 6%. Uganda with elections, they grew by around 6.5%. Honorable Speaker, Ethiopia grew higher at a faster speed than Kenya. Rwanda grew actually by double digits in the last quarter of last financial year, cumulatively growing by 9.4%. Whatever we say in political rallies as leaders, painting a picture that do not exist, many times the figures betray us."
Nyoro concluded by calling for reductions in government expenditure, insisting that ordinary citizens have already borne the weight of economic hardship. He said the focus should now shift to cutting wasteful spending within government offices and agencies.
"Kenyans have no belt to tighten, the belts that are available for to be tightened is the kind of budget you have seen in big offices in these estimates. Honorable Speaker, that an office that used to have 4 billion Kenya shillings in annual budget, now they have a budget cruising 20 billion Kenya shillings as of last, as by the end of last financial year. Currently, they're asking for 13 billion and for sure they are going to overshoot it. Honorable Speaker, it is time to cut the fat. Honorable Speaker, starting from the top so that we stop this kind of profligate expenditure."
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FELIX MAKONA
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