Kiharu MP Ndindi Nyoro has raised concerns about Kenya’s growing recurrent expenditure, emphasizing that it is severely restricting the government’s ability to fund essential development projects. Speaking at a forum organized by the Institute of Public Finance at the Hyatt Regency in Nairobi, Nyoro, a former chair of the National Assembly Budget Committee, argued that the country’s budget-making process needs urgent reform to address the imbalance between fixed costs and development spending.
Nyoro pointed out that over Ksh1.25 trillion of Kenya’s annual budget is allocated to fixed expenses, such as debt servicing, salaries, pensions, and transfers to counties, leaving just Ksh700 billion for vital infrastructure projects, including roads, schools, and healthcare facilities. The situation worsens by mid-year when the government often faces a shortfall of Ksh300 billion in revenue collection. Due to the rigid nature of fixed costs, development spending often becomes the first casualty when this shortfall arises, further slowing down progress.
The MP also expressed concerns about the impact of upcoming elections on public finances. He highlighted the Independent Electoral and Boundaries Commission’s (IEBC) anticipated request for Ksh60 billion, an amount greater than the allocation for the entire roads sector. This, Nyoro argued, illustrates the priorities of politicians who often overlook the importance of development in favor of electoral spending.
In addition to calling for a review of budget allocations, Nyoro proposed that Kenya undertake institutional reforms to streamline government operations. He suggested that the size of the government could be reduced without affecting the quality of services. “If government was a loaf of bread, you could cut it in half, and my grandmother wouldn’t even notice,” he remarked, stressing the need for efficiency.
As Kenya prepares its budget for the next financial year, the challenge of balancing constitutional obligations, debt servicing, and development needs remains a key issue. Nyoro’s comments highlight the urgent need for a shift in fiscal priorities to ensure sustainable growth and infrastructure development for the country’s future.
