A simmering political fallout has erupted into the open as Kiharu MP and former Budget Committee Chairman, Ndindi Nyoro, directly challenged President William Ruto to account for trillions of shillings in borrowed funds before establishing a new KES 5 trillion National Infrastructure Fund (NIF). The move signals a deepening rift between the President and a once-trusted confidante, placing the government's fiscal management and transparency under intense scrutiny.

Speaking at a public forum, Nyoro, whose position as the former head of the powerful Budget and Appropriations Committee lends weight to his assertions, questioned the prudence of launching another massive fund when the impact of previous borrowing remains unclear. "We have borrowed close to Sh4 trillion already. Before setting up another trillion-shilling fund, those in government must face Kenyans and explain what they have done with the money already borrowed,” Nyoro stated.

A Challenge Over Off-Book Borrowing

At the heart of Nyoro's critique is the nature of the proposed National Infrastructure Fund, which he described as a form of “borrowing outside the book” designed to bypass scrutiny of the country's ballooning public debt. He warned that mechanisms like leveraging and securitisation, which the fund would employ, risk plunging the country into deeper debt without parliamentary oversight. "They are basically saying that for one shilling, they borrow 10 shillings. What they are doing is to run away from the ballooning public debt to create a fund for another debt,” Nyoro warned, dubbing the initiative the "national irregular debt fund."

This public challenge is the latest in a series of criticisms from Nyoro, who has become increasingly vocal about the administration's fiscal policies since his removal as Budget chair in March 2025. He has previously accused the government of borrowing more recklessly than its predecessor and warned that Kenya is edging dangerously close to a debt default.

Scrutiny on Secretive Funds

While the headline of this story mentions the "National Intelligence Fund," Nyoro's recent public statements have focused on the newly proposed "National Infrastructure Fund" (NIF). However, his line of questioning taps into a broader national concern about opaque government spending, particularly within secretive entities like the National Intelligence Service (NIS).

The NIS budget, often shielded from public view, has seen significant increases, raising questions in Parliament. Recent supplementary estimates boosted the spy agency's budget to over KES 55 billion, citing regional instability and counter-terrorism efforts. This spending is among the least scrutinised in government, typically presented as a single-line item, a practice that frustrates oversight bodies.

• Public Debt Growth: Kenya's public debt surged from KES 8.5 trillion in June 2022 to KES 12 trillion by June 2025.
• Daily Borrowing Rate: Nyoro has claimed the administration is borrowing as much as KES 3.5 billion every day.
• NIS Budget: The intelligence agency's budget was recently increased by KES 9.3 billion to a total of KES 55.65 billion.

For the average Kenyan, these staggering figures translate into concerns about the cost of living and the allocation of their taxes. Nyoro's pivot from a key government insider to a vocal critic brings the debate over national debt and financial transparency from the committee rooms of Parliament directly to the public square. He has argued that while the government sells "grandiose ideas," essential services like education are suffering from funding cuts.

The Presidency has yet to issue a formal, detailed response to Nyoro's specific allegations regarding the KES 4 trillion, though President Ruto has previously dismissed general criticism of his economic policies as “empty talk.” As this high-stakes political drama unfolds, the pressure mounts on the administration to provide the answers that a growing number of Kenyans, led by one of the President's former key allies, are now demanding.