NAIROBI — In a Parliament increasingly split over the state of Kenya’s economy, two political heavyweights are drawing sharp lines in the sand.
John Mbadi, the newly appointed Treasury Cabinet Secretary and former opposition stalwart, is defending the government’s handling of debt. His former colleague, Kiharu MP Ndindi Nyoro, now a vocal critic, warns the nation is inching dangerously close to a financial cliff.
The back-and-forth, played out on the floor of the National Assembly this week, offers a rare, candid glimpse into the competing views shaping Kenya’s economic future.
“We are not about to default,” Mbadi told MPs on Wednesday. “That kind of talk is reckless. It’s panic-inducing and it doesn’t help anyone.”
He was responding to remarks made earlier by Nyoro, who had described Kenya’s public debt as “the greatest threat facing the country today.” The two men, once seen on opposite ends of the political spectrum, have since swapped places—Mbadi now defending the state, Nyoro criticising it from within the ruling coalition.
Mbadi, who joined President William Ruto’s administration as a technocrat, admitted the government is under pressure. But he insisted the situation is manageable.
“Our problem is not insolvency—it’s liquidity,” he said. “Most of our loans are maturing between now and 2032. After that, we’ll have very little to repay externally. No bilateral, commercial or multilateral debt will be due from 2034 to 2048.”
He cited data from the International Monetary Fund and World Bank to back his claims, arguing that Kenya remains the most stable economy in the region.
“If we had failed to pay salaries, capitation to schools or essential government services, then I’d be worried,” he said. “But we’ve honoured those obligations. We’ll continue to do so.”
Still, critics remain unconvinced.
Nyoro, who only recently chaired the powerful Budget and Appropriations Committee, painted a bleaker picture. Speaking earlier in the week, he accused the Treasury of downplaying the scale of the debt crisis.
“From the Kibaki era to now, debt has ballooned from Sh600 billion to nearly Sh10 trillion,” Nyoro said. “Revenue collection has grown too, but not at the same pace. Right now, more than Sh1 trillion is going straight to interest payments. That’s not sustainable.”
According to Nyoro, the Consolidated Fund Service—the kitty used to pay off public debt and other constitutional obligations—will consume nearly 80 percent of projected revenues in the next budget cycle.
“Add salaries and the county allocations, and what’s left for development? Not much,” he said. “We budget for development, but always fall short. The money goes to survival, not progress.”
He warned that core institutions like the Independent Electoral and Boundaries Commission (IEBC), which is seeking over Sh60 billion for its upcoming operations, may soon be competing with roads and infrastructure projects for limited funds.
The debate comes at a delicate time. With national elections just two years away and an economy still recovering from global shocks and domestic strain, the government is walking a tightrope.
Mbadi, for his part, urged patience and unity.
“We’ve got to steer this ship together,” he said. “Yes, the waters are choppy. But we have the tools, the data, and the will. We’ll get through this.”
For now, the clash between Mbadi and Nyoro reflects more than just numbers on a ledger. It’s a political and philosophical struggle over how Kenya defines fiscal responsibility—and who gets to call the shots.
As the budget season unfolds, expect more fireworks. And with billions on the line, Kenyans will be watching.
