By Brian Kiprono - Reporter
Kenya, December 8 2025 - Kiharu MP Ndindi Nyoro has escalated warnings over what he calls a troubling shift towards “shadow budgeting” within government, accusing the National Treasury of bypassing Parliament and locking the country into long-term financial risks.
Speaking on Monday at the launch of the Okoa Uchumi Report by The Institute for Social Accountability (TISA), Nyoro said Kenya was drifting into the same opaque fiscal territory that pushed Senegal into a debt crisis fuelled by undisclosed liabilities and off-budget borrowing.
Nyoro claimed the Treasury had already taken out Sh175 billion in loans that do not appear in the national budget, alleging the debt is secured against fuel levy revenues for the next 15 years.
“We have mortgaged the fuel levy. When you examine the pattern of borrowing, we are following the script of Senegal,” he warned, urging the government to halt what he termed “back-door financing”.
The MP’s strongest criticism, however, was directed at the planned sale of a 15 per cent government stake in Safaricom PLC. He questioned the valuation of the deal, saying the process lacked transparency and risked depriving citizens of fair value.
Nyoro pointed to earlier assessments that placed the telco’s worth at about Sh1.8 trillion. It therefore made little sense, he argued, for the government to dispose of its shares at what appears to be a sharply discounted rate.
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“If a plot valued at Sh450,000 is improved and begins generating income, how do you sell it — plus the building — years later for Sh340,000? It makes no investment sense,” he said.
He urged the Treasury to open the sale to competitive bidding, insisting that secrecy could only fuel suspicions of incompetence or self-interest. “Let the current suitor bid openly. Let other telcos bid. Kenyans should see the process and know they are receiving value,” he added.
Nyoro also alleged that individuals outside the government had taken part in early negotiations with potential buyers — a claim he said he could prove if required.
He criticised Treasury Cabinet Secretary John Mbadi for “negotiating from a position of desperation” after public remarks framing the country as financially distressed. He further accused the Treasury of turning to widespread securitisation — pledging future revenues from the fuel levy, Sports Fund and the Housing Levy — warning this could tie the hands of future administrations and weaken Parliament’s oversight.
“This model creates two budgets: one visible and another hidden from the books. It is essentially privatising public assets while piling on debt,” he said. The National Treasury has not responded to the allegations.
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