Kenya could be marching straight into a financial storm similar to Senegal’s, if revelations by Kiharu MP Ndindi Nyoro are anything to go by.
The vocal legislator has warned that the government is secretly borrowing billions “off the books”, mirroring the financial scandal that recently shook Senegal after its new administration uncovered $13 billion in undisclosed loans contracted by former President Macky Sall’s regime.

In a hard-hitting statement posted on his social media titled “Senegal Debts and Kenyan Lessons,” Nyoro drew a chilling comparison between Dakar’s debt crisis and Nairobi’s rising fiscal risks.
“We must as a country avoid falling into that kind of abyss,” Nyoro cautioned. “Our national debt is now over Ksh 12.5 trillion — and that’s just what’s recorded. Beyond that, government institutions are secretly borrowing by securitising future taxes and levies.”
Billions Borrowed Against Future Taxes
According to the Kiharu MP, the state has already borrowed Ksh 175 billion using fuel levy revenues for the next seven years as collateral — with another Ksh 100 billion expected to follow.

He further disclosed that the Ksh 44.5 billion Talanta Bond, which was floated using Sports Fund revenues as security for 15 years, will accrue over Ksh 100 billion in interest by maturity. Similar borrowing patterns, he claims, are being replicated through the Tourism Fund and an upcoming Ksh 400 billion loan pegged on the Housing Levy.
“This is how it’s working — create a fund, then institute levies, then use the history of the levy to borrow secretly off the books,” Nyoro explained. “It’s illegal and it constrains our future fiscal flexibility.”
He further revealed that the National Treasury is in the process of establishing an Infrastructure Fund — another potential borrowing vehicle that could further bloat the country’s shadow debt.
Echoes from Senegal’s Financial Scandal
Nyoro’s remarks come amid continental concern over how African governments manage public debt. In Senegal, the administration of President Diomaye Faye and Prime Minister Ousmane Sonko recently discovered $13 billion in “off-the-book” loans contracted without disclosure — throwing the West African nation into an economic tailspin.

The Kiharu MP warned that Kenya could easily replicate that scenario if current trends persist.
“All these funds are government-owned. If they default, taxpayers will still pay. That’s why we must act now — before Kenya wakes up to its own $13 billion shock,” he said.
A Country Borrowing Ksh 4 Billion a Day
Kenya’s debt continues to soar at an alarming rate. Nyoro estimates that the government borrows between Ksh 3.5 billion and Ksh 4 billion every day, excluding the money borrowed merely to service older loans.
Economists have long warned that such aggressive borrowing, coupled with revenue shortfalls, could push Kenya into a debt trap — forcing the country to use future taxes and mandatory levies to secure new loans.
