Kenya’s rising debt and the government’s appetite for borrowing have continued to spark debate, with leaders now questioning the long-term impact on ordinary citizens.
Suba South MP Caroli Omondi has expressed concern that the borrowing trend may push small traders and entrepreneurs out of the credit market, leaving them unable to access affordable loans to support their businesses and families.
His remarks come at a time when the government plans to raise Ksh480 billion this year alone from the market, a move he warns could deny many Kenyans the financial space they desperately need.
Speaking during a Monday morning discussion on a local TV station on August 18, 2025, Omondi reminded Kenyans of the importance of small loans for survival and business growth.
He pointed out that behind the statistics and government borrowing figures are real people struggling to make ends meet.
“In Nairobi, there is a food vendor, a single mother, who sells tea, bread and mandazi to support her family. She may only need Ksh5,000 as working capital,” Omondi explained.
“Or a young man selling sugarcane on a wheelbarrow may need Ksh10,000. These people cannot compete for credit if the banks are lending heavily to the government instead.”
The MP went further to share examples from his constituency, highlighting a women’s empowerment programme he launched more than a year ago.
Through the initiative, women were encouraged to form groups, practice table banking, and eventually open accounts with formal banks.
With proper organization and discipline, the groups were supported with financial backing, including a Ksh10 million contribution from the president to boost their activities.
According to Omondi, such programmes have offered women and communities an important lifeline, helping them manage daily needs and earn a living.
However, he was quick to caution that while empowerment programmes are useful, they are not sustainable solutions without access to affordable credit.
“If we want to lift people out of poverty, we must provide affordable credit that goes in a cycle–borrow, use, repay, and grow,” he said.
Omondi argued that borrowing by the government on such a massive scale risks undermining these efforts, since banks tend to prioritize lending to the state over small borrowers who lack collateral and bargaining power.
He emphasized that programmes meant to support women and youth in business should not be seen as a replacement for proper credit systems.
“This is a short-term measure. It may help someone earn a living, but it will not transform society,” Omondi added, warning that Kenya could end up with a system where people only survive instead of thriving and growing their businesses.
His remarks reflect wider concerns in the country as debt continues to rise and access to credit remains a challenge for many small traders. While loans are necessary for infrastructure and development projects, Omondi insisted that the government must find a balance that ensures small businesses are not pushed out of the financial market.
He called for policies that allow both the state and citizens to access credit without one blocking the other, reminding leaders that true economic growth depends on empowering the ordinary Kenyan.
