“That is Irresponsible!” CS Mbadi Responds to Kiharu MP’s Comment On Kenya’s Debt Status
Treasury CS John Mbadi has responded to Kiharu MP Ndindi Nyoro’s remarks, raising alarm over the country’s debt status, cautioning that the country risks joining Africa’s growing list of defaulters.
Nyoro, who spoke at the launch of the shadow budget for the 2025–2026 financial year by the Institute of Public Finance, said the public debt, now estimated at Sh11 trillion, is spiralling out of control, and any move to renegotiate it could trigger even worse economic fallout.
“The country is edging dangerously close to default. Any indication that we are unable to service our loans is more catastrophic to our economy,” the Kiharu MP said.
However, while appearing before the National Assembly on Wednesday, on Wednesday 16th April after he was summoned by lawmakers over the release of NG-CDF funds, CS Mbadi dismissed Ndindi Nyoro’s remarks and assured parliament the country is able to pay all its debt obligations.
”I listened to one of us argue that this country is likely to default on its debt payments. That is an irresponsible statement. It can cause panic, and it should not come from someone who has chaired the Budget and Appropriations Committee,” CS Mbadi said.
The CS said figures from the World Bank and the IMF have given Kenya a clean bill of health over its loan repayment status and rated the country as having not defaulted on its loans.
”Yes there were times when we had challenges, but where we are, we do not have a problem with debt sustainability. The numbers are there, the figures are there. Even the IMF and World Bank have the figures. We have been rated out there,” Mbadi added.
He further revealed that the only problem the country faces is one of liquidity over loans maturing between now and 2032, but assured Kenyans that after 2032, the country will have no loans to pay.
”Between now and 2032 we must work together to steady our economy, and that is why some of us were taken to the Executive as experts to make sure we steady the ship…this process will continue, I am committed to it. There is no time we will default in our loan repayment.”
