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Ndindi Nyoro warns of looming debt crisis, calls for reforms and village elders’ stipend

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Kiharu MP and former Budget Committee Chair Urges Government to Act on Fiscal Discipline and Grassroots Support

Kiharu Member of Parliament Ndindi Nyoro has sounded the alarm over Kenya’s growing debt burden, warning that the country is teetering on the brink of a fiscal crisis if immediate reforms are not implemented in public finance management.

Speaking ahead of the June budget reading, Nyoro revealed that more than Sh1 trillion of the upcoming national budget will be allocated solely to interest payments on existing debt. He further disclosed that the government intends to borrow an additional Sh900 billion during the 2025/26 financial year, a move he cautioned could deepen Kenya’s debt distress.

“We are walking a tightrope. Over a trillion shillings will be spent on debt interest, leaving little room for development spending. This is unsustainable and dangerous,” said Nyoro, a former Chair of the National Assembly Budget and Appropriations Committee.

In a bid to address the situation, Nyoro called for urgent reforms in the way public finances are managed, emphasizing the need for transparency, efficiency, and prioritization of spending.

At the same time, the legislator urged the Ministry of Interior to revise its budget to include a monthly stipend for the country’s 45,000 village elders, whom he lauded as critical to grassroots governance and security.

“Village elders are the unsung heroes of local administration. They maintain peace, resolve disputes, and support community cohesion. It’s time the government recognized their role through a monthly stipend,” Nyoro stated.

He pledged to champion both the call for fiscal reforms and the push for village elders’ remuneration in Parliament, emphasizing the need for a balanced budget that addresses national financial challenges while also empowering local governance structures.

Nyoro’s remarks come at a time when concerns over Kenya’s rising debt levels have sparked public debate and calls for austerity and debt restructuring measures.