Irungu Nyakera, Kenyatta International Conference Centre (KICC) Board of Directors Chairperson and the Party Leader, National Chairman of the Farmers Party, and the Irungu Nyakera Foundation’s patron
As the country grapples with a severe economic crisis, despite President William Ruto’s assurances that it is heading in the right direction, Kenyatta International Conference Centre (KICC) Board of Directors Chairperson Irungu Nyakera has voiced sharp criticism of the government’s approach.
In a statement, Nyakera, the Party Leader, National Chairman of the Farmers Party, and the Irungu Nyakera Foundation’s patron, emphasized that excessive borrowing is undermining the nation’s economic stability and contributing to a decline in domestic growth.
‘’Government borrowing crowding out the private sector, leading to domestic credit growth dropping to an all-time low of 2.3% in September 2024.’’ Irungu’s statement read.
Nyakera added that pending bills have largely derailed development projects, which is why heavy auctioneers are experienced.
‘’ Spiraling pending bills. Pending bills made under the just concluded verification exercise amounted to over Ksh. 670bn, owed to over 115,000 claimants. Most of these pending bills add up to the current 16% private sector non-performing Performing Loans with banks and is the main cause of the auctions we are seeing in our dailies.’’ Nyakera stated.
Nyakera also voiced his concerns regarding the growing burden of unsustainable debt obligations.
‘’Kenya’s total debt service obligation for FY 2024/25 stands at Ksh 1.85 trillion, constituting debt redemption at Ksh 843.4 billion and interest payment at Ksh 1.1 trillion. Without a thorough reassessment of debt sustainability, continued borrowing will lead to a severe debt trap, constraining fiscal space and limiting the government’s ability to invest in essential services and development initiatives.
He has called on Kenyans to seek accurate information and urged the relevant authorities to address and re-evaluate the underlying issues to rescue the nation from its current challenges.
‘’Until we can address these three issues, our economy will continue struggling.’’ Nyakera added.