Kenya’s debt has already passed the Ksh11 trillion mark, and now questions are being raised about how the government is managing the crisis.
Instead of finding solutions to ease the burden, Transport Cabinet Secretary Davis Chirchir has been caught in the middle of a controversial Ksh175 billion infrastructure bond deal that appears to add more confusion than clarity.
His defense has left many Kenyans convinced that the government is only digging the country deeper into debt through technical loopholes and financial tricks meant to disguise new borrowing.
When Chirchir was summoned to appear before the National Assembly’s Budget and Appropriations Committee, he insisted the arrangement with the Trade and Development Bank was not a loan but a financing structure.
He explained that money from the Road Maintenance Levy Fund had been diverted to a Special Purpose Vehicle which would then borrow against future revenues.
According to him, this made the transaction separate from government books and therefore it should not be classified as debt. He even claimed no sovereign guarantee had been issued and that the risks would not fall on the Treasury.
But the truth is that such explanations do little to calm the fears of Kenyans who have seen this playbook before. Financial experts and MPs immediately pointed out that the whole setup looks like a strategy to keep borrowing hidden from official records.
By disguising the deal as something other than a loan, Chirchir is only helping the government pretend the country’s debt situation is under control.
In reality, it exposes the country to hidden obligations that taxpayers may eventually be forced to pay if the Special Purpose Vehicle defaults.
Kenya’s debt level is already unsustainable. At over Ksh11 trillion, with 63 percent of GDP tied up in debt, the country is far above the legal limit of 55 percent.
Servicing this mountain of debt already eats up nearly half of all tax collected. The addition of secretive financing arrangements like Chirchir’s bond only worsens the picture.
It is reckless for him to claim that risks will not spill back to the Treasury when experience shows that once such deals collapse, it is the taxpayer who suffers.
The Ksh175 billion is supposed to cover pending bills at the State Department for Roads and fund the Nairobi-Nakuru-Mau Summit Highway, a project long surrounded by controversy.
Critics wonder why a project with so many unanswered questions is being rushed through a questionable financing model.
The concern is that the SPV route could allow connected individuals to benefit from inflated contracts while Kenyans are left to carry the long-term burden.
Chirchir’s insistence that this is not debt only makes things worse. Instead of admitting that the government is desperate and cornered by financial pressures, he has chosen to play with words to mask reality.
Kenya cannot afford such dishonesty at a time when citizens are struggling with high taxes and rising costs of living. Every hidden loan and off-book deal places more weight on the shoulders of future generations.
Chirchir’s Ksh175 billion bond deal looks less like a solution and more like a dangerous gamble. By trying to bypass accountability and debt ceilings, he has opened the door to more financial instability.
Kenyans deserve transparency, not tricks. If Parliament fails to step in, this deal could easily turn into another expensive scandal that will haunt the country for decades.
Chirchir’s handling of the matter has shown the rot at the heart of government borrowing, and it is clear that without firm checks, Kenya’s debt crisis will only get worse.
