Kenya’s Debt Crisis: Kiharu MP Ndindi Nyoro Warns Country Could Soon Default

Kiharu Member of Parliament Ndindi Nyoro has sent shockwaves across the country after admitting that Kenya is walking a dangerous path with its rising public debt.

Speaking during the Institute of Public Finance annual budget review, Nyoro warned that Kenya, now sitting on a public debt of Ksh.11 trillion, is dangerously close to defaulting.

This comes from a man who, not long ago, stood firmly behind President William Ruto’s budget policies.

“The country is on the brink. We are staring at a possible default,” Nyoro said. “Any signal that we’re struggling to repay loans could be very dangerous for our economy.”

According to Nyoro, Kenya is now using over Ksh.1 trillion every year just to pay interest on its loans with Ksh.750 billion going to local lenders and another Ksh.200 billion to international creditors.

This means a huge chunk of taxpayer money is being spent on debt, instead of improving the lives of ordinary Kenyans.

Worryingly, Nyoro also revealed that the government has quietly reached out to China for help in restructuring some of its loans.

He cautioned that such moves could raise red flags with international lenders and harm Kenya’s reputation in global markets.

“Even hinting at a default can shake investor confidence,” he added.

Nyoro also hit out at the government’s decision to increase taxes, saying it’s doing more harm than good. “Raising taxes kills spending. People are not investing or buying. Businesses are suffering.

And in the end, the government is collecting less, not more,” he said.

Since President Ruto took office, the country’s debt has grown by over Ksh.2 trillion from Ksh.8.7 trillion to over Ksh.11 trillion in less than three years.

For many Kenyans already dealing with high prices, job cuts, and a slow economy, Nyoro’s warning feels like confirmation of what they already know: things are not okay.