Treasury Cabinet Secretary John Mbadi has launched a scathing rebuke against Kiharu Member of Parliament Ndindi Nyoro, condemning his recent remarks on Kenya’s national debt, terming them both reckless and grossly irresponsible.
Speaking in Parliament on Wednesday, April 16, 2025, where he was summoned over delay in the disbursement of the Constituency Development Fund (CDF), Mbadi accused Nyoro of carelessly misleading the public with assertions that the country is teetering on the brink of defaulting on its Ksh11.7 trillion debt and described his claims as dangerously alarming and unsubstantiated.
Visibly agitated, the Treasury CS implored lawmakers to exercise greater caution and responsibility when making public statements that could potentially erode public confidence and trigger unnecessary panic across the nation.
“We must support our security agencies and institutions, and I appeal to all of us—as leaders, regardless of public opinion about us—to act with circumspection,” he stated. “I listened, with great concern, to one of us argue that this country is approaching a situation where it may default on its debt repayments. Such a claim is not only misleading; it is profoundly irresponsible. Remarks of this nature are capable of causing widespread anxiety and destabilising our economic confidence.”
Mbadi went on to express particular dismay that such remarks originated from an individual who had previously been entrusted with the leadership of the Budget and Appropriations Committee—a parliamentary body whose core mandate is to steer the country’s financial direction with prudence and foresight.
“It is utterly reckless, and such commentary ought never to emanate from someone who has had the privilege of chairing the Budget and Appropriations Committee,” he said firmly. “Let us be clear—while the country has experienced periods of fiscal strain in the past, the current situation does not reflect a crisis of debt sustainability. The empirical evidence is readily available, and even the International Monetary Fund has affirmed it. Kenya’s credit ratings and external assessments remain intact.”
He further clarified that although the country is currently grappling with short-term liquidity constraints, its overall debt structure remains sound and well-calibrated, with the bulk of repayments falling due within a clearly defined timeframe extending to 2032.
Beyond that period, he noted, Kenya’s exposure to external debt obligations would begin to decline significantly.
“Our challenge is not with the level of indebtedness itself but with liquidity—managing the timing of payments. The loans were contracted during a specific fiscal window, and the majority of them will mature between now and 2032,” he explained. “After that, a thorough examination of the fiscal records will reveal that we shall have no substantial external loans to service—whether collateralised, bilateral, commercial, or otherwise.”
Emphasising the necessity of institutional cohesion, Mbadi called upon Parliament, the Treasury, and the Executive to work in concert to stabilise the economy and reinforce the public’s trust in government.
He reminded the House that the appointment of experienced policymakers like himself to the executive was intended to support the nation through complex financial periods.
“This House bears an obligation, just as the Treasury and the Executive do. We must adopt a united and deliberate approach to economic management,” he said. “Some of us were brought into the executive in our capacity as technocrats, precisely so we could help guide the country through critical junctures such as this.”
Robust economy
Addressing the insinuation that Kenya is on the cusp of defaulting on its debt, Mbadi was unequivocal in his rebuttal, insisting that the country remains resilient and economically robust.
“This country will not default—full stop. Kenya remains the strongest economy in the region, and it is deeply irresponsible to suggest otherwise,” he declared. “While we may be facing certain financial headwinds, to falsely claim that we are approaching default is to peddle fear and mistruths.”
To underscore his point, Mbadi cited the government’s ability to meet its financial obligations without fail, including the payment of civil servant salaries, disbursement of education capitation funds, and the release of Constituency Development Fund (CDF) allocations.
“Have we failed to pay public sector wages? Certainly not. Have we withheld capitation funds from our schools? On the contrary, we have paid in full. Are we committed to releasing the full allocation of the CDF for infrastructure and community development? Yes, we are. Will county governments receive their rightful share of resources? Without question,” he asserted, his tone rising with each assurance.
Reflecting on his own tenure as a long-serving member of Parliament, Mbadi noted that delays in budgetary processes are neither novel nor indicative of systemic failure and should therefore not be used to sow alarm.
“I have served in this House for many years, and I recall sitting in that very corner,” he said with a touch of nostalgia. “This is far from the first time that the country has experienced delays in budgetary execution. Even during the last financial year, we faced comparable circumstances.”