A former fraud expert with extensive experience in the National Treasury has raised serious concerns over Kenya’s borrowing under President William Ruto’s government.
Bernard Muchere, a certified fraud examiner with over forty years of service at the Treasury, claims that in the past three years, the government has borrowed a total of Sh4.2 trillion.
According to him, only Sh958 billion of this amount has been directed to actual development projects, leaving Sh3.3 trillion as what he describes as unlawful or “odious” debt.
Muchere says this large portion of borrowing has been used to cover recurrent costs and repay existing loans rather than fund new initiatives.
His findings are based on official Statements of Actual Revenues and Net Exchequer Issues for the financial years ending June 2023, 2024, and 2025. Muchere highlights that during the same period, the government collected Sh6.7 trillion in taxes.
Combining this with the loans, Kenyans effectively financed Sh10.9 trillion of government expenditure. Despite this massive sum, Muchere observes that very little tangible development is visible on the ground.
He warns that the current approach to debt is unsustainable. The government’s practice of borrowing new funds to pay off old loans and cover operational costs creates a dangerous cycle.
It also opens opportunities for fraud, as accountability becomes harder to maintain with continuous borrowing.
Muchere emphasizes that this method of financing operations amounts to hidden taxation, undermining promises made during the 2022 campaigns to reduce the tax burden on citizens.
Muchere is not new to uncovering financial irregularities in government. In the past, he exposed scandals such as the Sh5 billion Ministry of Health case and irregularities at Ronald Ngala Utalii College.
His long record of whistleblowing adds weight to his current claims, signaling serious issues in how the government manages public funds.
Other oversight bodies have also raised concerns about Kenya’s borrowing trends.
The Controller of Budget, Margaret Nyakang’o, and the Auditor General, Nancy Gathungu, have repeatedly flagged the high levels of borrowing and questioned the transparency of how funds are used.
Their reports suggest that the government’s reliance on debt to finance both development and operational needs poses risks to economic stability.
Muchere’s warning is clear: unless there is stricter control over borrowing and better prioritization of funds for development, Kenya’s debt situation could worsen.
Citizens may continue to shoulder the burden through hidden taxes, and opportunities for misuse of public funds will persist.
His revelations call for urgent attention to ensure that borrowed money is used effectively and transparently, rather than simply keeping the debt cycle going.
This situation raises pressing questions about fiscal discipline and whether government promises to reduce citizen taxation are being undermined by borrowing practices that benefit operational needs over tangible development.
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