Kiharu MP Ndindi Nyoro has called for greater transparency and accountability in government borrowing, demanding that a Sh175 billion loan secured against a Sh7 per litre fuel levy be officially included in Kenya’s national debt records.
Nyoro, the former chairperson of the Budget and Appropriations Committee in the National Assembly, accused the government of sidestepping Parliament in imposing the levy and borrowing against it without prior disclosure. He dismissed explanations offered by top government officials on the securitization of the levy as mere diversionary tactics.
According to Nyoro, the Sh7 levy added on top of the existing Sh18 Road Maintenance Levy was introduced when global fuel prices were already dropping. However, Kenyans have not benefited from the global relief, with fuel prices remaining high domestically. He contrasted Kenya’s fuel prices with those of neighbouring countries, pointing out that petrol in Tanzania costs Sh142 per litre, while in Uganda and Rwanda, prices are below Sh182 and Sh170 respectively.
“Fuel is cheaper across our borders. Our prices are not high because of global trends, but due to internal policies like this levy,” Nyoro argued.
Treasury Cabinet Secretary John Mbadi defended the government’s decision, saying the levy was used to secure funds for the completion of stalled road projects. He insisted the move was transparent and within legal frameworks. Transport CS Davis Chirchir echoed this, saying the securitization followed all legal and financial procedures.
However, Nyoro questioned the rationale behind excluding the loan from the national debt register, its interest burden, and the legal guarantees backing it. “By the time the loan matures in seven years, we’ll have paid an extra Sh100 billion in interest. Why is it not part of the country’s official debts? What if a future policy revokes the levy what collateral did banks receive?” he asked.
Calling the move a potential scandal, Nyoro urged the government to uphold fiscal transparency and comply with the Public Finance Management Act. “Public funds must be used prudently. Recognize this debt for what it is,” he emphasized.
