Ndindi Nyoro Blasts Ruto for Taking Expensive KSh 44b Loan to Construct Talanta Stadium: "Reckless"
- Kiharu MP Ndindi Nyoro has yet again got back at President William Ruto over the funds secured from the capital market to fund the Talanta Stadium construction
- The government raised KSh 44.8 billion after listing a bond with a 15% interest rate due for maturity in 15 years from now
- Nyoro argued that such exorbitant interest rates would burden the taxpayer, as they would be forced to service the facility as sovereign debt, even before the current public debt is settled
With each day, Kiharu MP Ndindi Nyoro emerges with attacking points against President William Ruto's regime, which he supported passionately until four months ago when he quit the chairmanship of the powerful National Assembly's Budget and Appropriations (BAC) Committee.
Source: Facebook
His latest bone of contention is a Sports Fund bond issued by the government to secure funds for the construction of the 60,000-seater Talanta Stadium along Ngong Road, Nairobi.
Earlier Wednesday, July 23, Ruto presided over the listing of the said bond on the Nairobi Securities Exchange (NSE) with the intent to raise monies to fund the development of the ultramodern sporting facility.
Why Ndindi Nyoro is concerned
The capital market would raise at least KSh 44 billion for the government, which will be repaid in 15 years.
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Reacting to the development, Nyoro argued that it was another fiscal blunder on the side of the government.
His concern is that the government is utilising what is meant to be future revenues in the present day, which would ultimately burden Kenyans later, given the high interest rate the security has been offered at.
He warned that with the bond’s 15.04% interest rate, given that the government is the guarantor of the Sports Fund, taxpayers tend to repay over KSh 100 billion in the next 15 years in interest only.
Cumulatively, the taxpayer will pay over KSh 144 billion upon the maturity of the bond even with the semiannual payment arrangements within that period.
Why Ruto's government shouldn't borrow again - Nyoro
Noting that the undertakings of the government are a going concern, Nyoro said it was unnecessary to secure another facility on top of a ballooned public debt, further questioning the need for an expensive loan when developmental projects are dynamic over the years.
"We are basically mortgaging every stream of government revenue, like Kenya is going anywhere. Kenya will still need a sports fund for the next 15 years. What is the urgency of rushing to overburden the country with a KSh 44 billion loan, which upon maturity would pay more than double on interest rate alone. From where we see it, it is a very reckless manner of running the fiscal of a country," he said.
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Nyoro also claimed that private investors were not interested in the bond, so the government forced the NSSF to invest workers’ pension money.
He compared this to previous hidden debts like the fuel levy and warned that such moves are not showing up in official records.
According to him, the facility has been secured for political gains, calling the regime in power to order.
"I request the leadership. Let us put our country first, build the convenience of what you want to do in terms of developmental politics, because Kenya will be here as the next election. We don't need to overheat our economy, just because people have to see that something is being done," he added.
Why Ndindi Nyoro is opposed to securitisation of fuel levy
The Kiharu lawmaker has been critical of Ruto's fiscal policies immediately after he quit the budget committee.
Elsewhere, the lawmaker has been calling out the government over the securitisation of the fuel levy to service another loan.
Nyoro argued that the KSh 175 billion irregularly acquired by the government without the approval of the National Assembly might turn out to be another responsibility for the Kenyan public.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
