Endless Debt Is the New Conduit for Corruption, It shall be our End.
By Billy Mijungu
Debt has quietly become a new channel for corruption in Kenya, especially under Section fifty subsection seven paragraph (d) of the PFM Act. This provision allows loan deductions at the source before the money even reaches the Consolidated Fund. It means billions can disappear abroad long before Kenyans see the funds. This loophole removes transparency, weakens accountability and leaves citizens paying for money that never fully arrives. Kenyans are justified in questioning a Parliament that appears unwilling or unable to protect the country from such practices.
Kenya’s slow march toward debt distress is no longer just about borrowing too much. It is about weak institutions that fail to challenge questionable financial decisions. Reports have warned that although Kenya has strong laws on paper, both Parliament and the Treasury Public Debt Management Office lack the technical strength and independence to resist risky and expensive loans. With public debt near 65% of GDP, far above the 55% ceiling Parliament set, the country is slipping deeper into danger. Years of borrowing for infrastructure, recurrent needs and refinancing have created a pile of short term, high interest and high risk loans that now weigh heavily on repayments.
Inside Parliament, the issue is not the absence of oversight tools but the refusal to use them. Members of Parliament have the power to set limits, question budgets and monitor how money is spent. They have access to technical advice, yet much of it is ignored. Committees meant to challenge government borrowing are dulled by political alliances and a muted opposition. Weak parliamentary oversight has allowed reckless borrowing to flourish.
The Treasury debt office struggles with similar challenges. The Public Debt Management Office does not have enough skilled negotiators for complex international loans. This leads to poor negotiation, costly terms and constant refinancing pressure. Strengthening this office, empowering Parliament would help restore discipline. But these reforms depend on leaders accepting limits on politically attractive spending.
Kenyans must now ask why borrowing has become the government’s first instinct. When the World Bank approved a housing loan of Kshs. 170B, it also known that Kenya has surplus out of Kshs 80B Housing levy. Instead of fixing these inefficiencies for deeo absorption, the state is turning the housing levy into a facility to service debt. Even entertaining the idea of borrowing Kshs. 400B upfront.
Kenya has the capacity to retire its debt, yet it is choosing to trade in debt itself. This cycle is worse than inflated tenders. Parliament must be called to order before the country sinks deeper into financial danger.
