Nairobi, Kenya – July 16, 2025

Ndindi Nyoro Alleges KSh 175 Billion Fuel Levy–Backed Loan Was Secretly Secured Without Parliament’s Approval

In a fiery public statement that has reignited concerns over fiscal transparency, Kiharu MP Ndindi Nyoro has accused the government of secretly securing a KSh 175 billion loan by using a fuel levy as collateral, without proper disclosure or parliamentary approval. Nyoro made the explosive allegation on July 15, sharply criticizing what he described as clandestine borrowing practices that threaten Kenya’s financial sovereignty.

According to the legislator, the government raised the fuel levy by KSh 7 per litre during a period of low global oil prices, creating additional revenue that was quietly pledged as security for the substantial loan. He claimed the arrangement had been masked under the guise of volatile fuel pricing and was not reflected in official public debt records.

“This money is not recorded in the government’s books as debt,” Nyoro said, warning that such unregulated financial maneuvering could set a dangerous precedent. “If public levies like the fuel charge can be securitized without oversight, what would stop future regimes from doing the same with VAT, PAYE, or NHIF contributions?”

Nyoro, a vocal figure in Parliament and a former chair of the National Assembly Budget and Appropriations Committee, was controversially removed from the post last year. Since then, he has become an increasingly independent and critical voice within the ruling coalition, often challenging Treasury decisions and energy pricing mechanisms.

The Energy Ministry has previously cited global oil market volatility as the main factor behind recent fuel price hikes, but Nyoro disputes that explanation, pointing to data showing that international crude oil prices peaked months ago. He alleges that the public is now paying inflated prices at the pump not because of global trends, but due to domestic financial engineering kept out of the public eye.

The accusations have sparked widespread political debate and mounting public concern, with analysts and civil society groups calling for urgent clarification from the National Treasury, Energy Ministry, and Office of the Controller of Budget. If substantiated, the claims could constitute a breach of the Public Finance Management Act, which requires all borrowing by government to be approved and disclosed through formal channels.

Nyoro has called on Parliament to demand full disclosure of all loans backed by earmarked revenues and has urged the Auditor-General to immediately audit fuel levy accounts. “Kenyans have a right to know how every shilling they pay at the pump is being used,” he said.

The government has yet to issue an official response to the claims, but pressure is expected to mount in the coming days as the matter takes center stage in both legislative and public discourse.