Ndindi Nyoro Opposes New KSh5 Trillion Infrastructure Fund, Warns of Rising Debt

Kiharu Member of Parliament Ndindi Nyoro has opposed the establishment of the new National Infrastructure Fund, warning that the initiative could lead to increased borrowing and place a heavier financial burden on Kenyans.

Speaking during the official opening of the Mwai Kibaki Senior School in Gaturi Ward, Nyoro said the country is already borrowing heavily, estimating that Kenya takes on about KSh1.5 trillion in loans each year.

The law establishing the fund was assented to on Monday by President William Ruto and aims to mobilise KSh5 trillion over the next 10 years to finance major infrastructure projects across the country.

However, Nyoro argued that the fund could allow the government to borrow additional money outside the normal budget framework.

“As we talk, Kenya is borrowing about KSh1.5 trillion. We are being told that for every KSh1 Kenya invests, it will crowd in another KSh12. That is another way of saying that for every KSh1 Kenya has, it wants to borrow another KSh12,” Nyoro said.

He warned that continued borrowing risks worsening the country’s debt situation and urged the government to stop overreliance on loans.

“That fund is meant to borrow more money outside the budget. It is not good to continue burdening Kenyans now and still burden them tomorrow. Let’s stop overborrowing,” he said.

Nyoro also criticised leaders supporting the initiative, cautioning that the country risks accumulating unsustainable debt levels.

“Yes, we want development today, but we must also think about posterity. We cannot keep pushing the country towards a debt burden that could eventually break it,” he added.

The MP further noted that sectors such as education are already facing funding challenges, warning that continued borrowing could further strain public services.

The National Infrastructure Fund was created through the National Infrastructure Bill, 2026, sponsored by National Assembly Majority Leader Kimani Ichung’wah. The law seeks to shift infrastructure financing toward an investment-led model designed to attract private capital for large national projects.

According to the government, the fund will operate as a corporate investment vehicle rather than a traditional government fund, with plans to finance projects in key sectors including roads, railways, ports, irrigation, and energy.

President Ruto announced that the expansion of Jomo Kenyatta International Airport (JKIA) will be the first project implemented under the fund, with about KSh20 billion in equity participation expected from the National Infrastructure Fund and domestic institutional investors.

Other projects identified as potential beneficiaries 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.

The government says the model mirrors similar infrastructure funds used in countries such as Nigeria, Ghana, India, Canada, the United Kingdom, and South Africa, which have successfully mobilised private capital to support national development projects.