The Lower Eastern Times Opening The Third Eye
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Kiharu MP Ndindi Nyoro has opposed the creation of the National Infrastructure Fund, recently approved by President William Ruto, warning that it could lead to increased borrowing instead of supporting sustainable development projects.
Speaking during the launch of the new Mwai Kibaki Senior School in Gaturi Ward, Nyoro said Kenya is already borrowing about KSh1.5 trillion each year, cautioning that the rising debt continues to place a heavy financial burden on citizens.
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He criticised the proposed fund, arguing that it could allow the government to take on additional debt outside the normal national budget framework.
“As we speak, Kenya is borrowing about KSh1.5 trillion. We are being told that for every KSh1 Kenya invests, it will attract another KSh12. That is simply another way of saying that for every KSh1, Kenya plans to borrow KSh12 more,” Nyoro said.
He warned that such borrowing could worsen the country’s debt situation.
“That fund is meant to borrow more money outside the budget. It is not right to keep burdening Kenyans today and still leave them with the same burden tomorrow. We must stop excessive borrowing,” he added.
Nyoro also criticised leaders aligned with the government, cautioning that Kenya risks accumulating unsustainable debt if the trend continues.
He said while development is important, it should not come at the cost of the country’s financial stability in the future.
The MP further noted that critical sectors such as education are already suffering due to limited funding, saying the situation has negatively affected the education system.
His remarks came a day after President Ruto signed the National Infrastructure Bill, 2026 into law, establishing a KSh5 trillion National Infrastructure Fund aimed at financing major development projects across the country.
The legislation, sponsored by National Assembly Majority Leader Kimani Ichung’wah, seeks to shift infrastructure financing toward an investment-based model that attracts private capital for large national projects.
According to the government, the fund will operate as a corporate investment vehicle rather than a conventional government fund. It aims to mobilise about KSh5 trillion over the next decade to finance projects such as roads, railways, ports, irrigation systems, and energy infrastructure.
President Ruto said the expansion of Jomo Kenyatta International Airport (JKIA) will be the first project implemented under the fund. The project is expected to involve around KSh20 billion in equity investment from the National Infrastructure Fund and domestic institutional investors.
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The President also noted that the model follows similar infrastructure funding approaches used in countries such as Nigeria, Ghana, India, Canada, the United Kingdom, and South Africa, which have successfully attracted private investment for major development projects.
Some of the projects expected to benefit from the fund include the Loosuk–Lessos power transmission line, the Galana-Kulalu irrigation project, the Rironi–Naivasha–Mau Summit highway, and the planned extension of the Standard Gauge Railway to Malaba.
