Ndindi Nyoro Slams Treasury Over Risky Loans, Misuse of Pension Funds: "Not Viable"
- Ndindi Nyoro warned the National Treasury over risky borrowing, lack of transparency, and misuse of pension funds for unprofitable infrastructure projects
- Nyoro further questioned the timing and valuation of Safaricom’s planned privatisation amid a bear market, urging full disclosure to ensure value for Kenyans
- The Kiharu MP also called for urgent funding to cover national exams, confirm 8,571 UHC health workers, and provide stipends for village health workers and elders
Faith Chandianya, a journalist at TUKO.co.ke, brings over three years of experience covering politics and Current Affairs in Kenya
Nairobi: Former Budget Committee chair Ndindi Nyoro has issued a stern warning to the National Treasury over questionable borrowing practices, risky use of pension funds, and critical shortfalls in the national budget.
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Did Nyoro demand clarity on the country's borrowing?
Speaking on Tuesday, June 3, Nyoro called for full transparency on the country’s borrowing, detailed information on the loan amounts, interest rates, repayment schedules, and total costs at maturity.
He criticised the securitisation of government revenue, saying it could cripple future administrations.
He also condemned the use of pension funds from NSSF, NHIF, and CPF to fund infrastructure projects that are already making losses.
“Why risk workers’ retirement savings on projects that are not commercially viable?” he asked.
Nyoro questioned plans to privatise Safaricom during a bear market and called for transparency on its valuation.
"I saw there is an attempt to privatise some of the government assets and especially Safaricom. I would want to know what the timeline is. As you know, the current rating of Safaricom being given a bear market cannot be the right time for privatising Safaricom...Are Kenyans getting value for their money?" Nyoro asked.
He called on the Treasury to urgently fill critical budget shortfalls, highlighting the need for KSh 6 billion to cover national exam costs, KSh 3.8 billion to finalise the appointment of 8,571 Universal Health Coverage (UHC) workers, and additional funding for stipends of village health workers.
“Let's include the critical funding now. In a KSh 4.2 trillion budget, these are essentials.Also include the amount for village elders. For our village to be paid around KSh 8000 a month, you just require less than KSh 10 million which is money you can afford as the National Treasury to write a memorandum to us,” he said.
CS John Mbadi slams Ndindi Nyoro
In a separate development, National Treasury Cabinet Secretary John Mbadi criticised Nyoro for his remarks on Kenya’s debt situation.
At a recent economic forum held by the Institute of Public Finance, Nyoro highlighted flaws in how Kenya is managing its current debt levels.
The Kiharu MP accused President William Ruto’s government of excessive borrowing, which has led to a heavy debt repayment burden.
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He argued that the administration inflated GDP figures by taking on expensive loans to refinance cheaper debt.
Nyoro compared this practice to borrowing from a loan shark to repay a bank loan, celebrating securing a new loan at 20% interest to clear one at 12%.
He warned that such poor debt management could push Kenya toward a potential default.
Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
