National Treasury Cabinet Secretary John Mbadi before the Parliament of Kenya to answer queries on the fate and the status of the disbursement of NG-CDF funds and the National Government Affirmative Action Fund (NGAAF) on April 16, 2025/COURTESY.
National Treasury Cabinet Secretary John Mbadi has taken a
swipe at Kiharu MP Ndindi Nyoro for claiming that Kenya is on the verge of
defaulting on loan repayment.
Speaking during Question Time in the National Assembly, the Treasury CS said
utterances by Nyoro are irresponsible as they could cause unnecessary panic.
“We need to be a little cautious. I listened to one of us
argue that this country is likely to default on debt payment. That is an irresponsible statement; it can
cause panic and should not come from someone who chaired the Budget and
Appropriations Committee,” he said.
Mbadi acknowledged that the country is faced with challenges
but maintained that Kenya does not have a debt sustainability problem.
“The numbers are there, IMF, the Word Bank have the figures.
We have been rated out there. The problem we have is about liquidity. Loans
were taken and most of them are maturing between now and 2032,” he explained.
“After between 2034 to 2048, there is no loan to pay. There is
no external loan to pay around that time, whether it is bilateral, commercial
or multilateral.”
He said it is the responsibility of the House and the
Executive to ensure the country does not default in debt repayment.
“There is no time we will default in loan repayment. Let nobody
scare people that Kenya is going to default,” he maintained.
“Let me ask you. Have we failed to pay salaries? Have we
failed to pay school capitation? Are we not meeting expenditure for security
and other matters? Are we going to pay monies to our counties?”
On Tuesday, Nyoro raised the red flag, warning that the
country is in a debt crisis and could soon join Africa’s debt defaulters club.
Speaking at the Institute of Public Finance annual budget
review, the former Budget and Appropriations Committee Chair said the country’s
public debt—currently estimated at Sh11 trillion—is worrying.
He warned that any attempts by the government to renegotiate
existing debt could prove to be even more disastrous.
