Nyoro Rejects Infrastructure Fund Over New Debt Risks

Kiharu Member of Parliament Ndindi Nyoro has voiced strong opposition to the newly established National Infrastructure Fund, cautioning that the mechanism could be used to facilitate excessive borrowing away from public scrutiny.

The legislator, who previously chaired the House Budget and Appropriations Committee, argued that the government must first account for nearly Sh4 trillion borrowed since 2022 before introducing a new multi-trillion shilling investment vehicle.

During a recent address, Nyoro characterized the fund as a potential decoy for off-the-books debt. He noted that the country’s public debt, which stood at Sh8.5 trillion in June 2022, has climbed toward Sh13 trillion.

According to Nyoro, the scale of recent borrowing should have already delivered completed infrastructure projects across all 290 constituencies. He suggested that such funds, if utilized effectively, could have provided 100 kilometers of tarmac in every constituency.

The National Infrastructure Fund Bill, 2026, which was recently signed into law, aims to mobilize Sh5 trillion over the next decade. The government intends to use the fund to finance highways, railways, ports, and energy systems.

While the executive maintains that the fund will reduce reliance on traditional debt by attracting private capital and pension funds, Nyoro remains skeptical of the oversight framework. He claimed that a significant portion of the fund's structure relies on borrowing that is not immediately visible to the public.

The MP further alleged that certain existing loans and financial arrangements, including those related to the Talanta board and the Bomas of Kenya, may fall outside the standard legal borrowing framework.

Nyoro’s critique comes as other opposition figures have also raised concerns regarding the fund's constitutionality. Some leaders have suggested that the new framework could be used to bypass existing procurement regulations for major projects like the Jomo Kenyatta International Airport expansion.

The law currently establishes a two-tier governance structure, featuring a Governing Council and a Board of Directors, to manage the investment policy. The National Assembly is expected to retain an oversight role by approving the fund's investment policies within 90 days of submission.

Despite the internal pushback, the government is proceeding with the rollout of the fund. Officials argue the shift is necessary to restart stalled megaprojects and move toward a sustainable, investment-led model for national development.