How the new loan model is daylight theft

Wiper leader Kalonzo Musyoka and and Martha Karua of People's Liberation Party address a press briefing in Nairobi, on July 31, 2025. [Collins Oduor, Standard] The Opposition wants Parliament to halt President William Ruto's securitisation financing model, terming it unconstitutional since it was done without parliamentary debate or approval. Led by Azimio leaders Kalonzo Musyoka who is also Wiper Democratic Party leader and Martha Karua of People's Liberation Party, they said introduction of Special Purpose Vehicles (SPVs) in the securitisation approach was allegedly meant to conceal government's criminal operations. "These (special purpose vehicles) are run by faceless technocrats and unaccountable corporations. The primary objective of these vehicles is to divert public resources away from Parliament, the Auditor-General, and the people. This is daylight robbery; it is shameless thievery the likes of which no nation has ever seen or should witness," Karua said. They said the securitisation funding approach was a betrayal of public trust and a direct violation of the Public Finance Act. Describing the new model as a reckless scheme to sell off Kenya's future, Karua called for an independent audit into all SPVs handling public resources. Despite the Opposition's criticism of the funding model, President William Ruto described it as "innovation and sophistication that is now driving financial solutions that respond to the evolving needs of both the public and private sectors." "Most importantly, it confirms our capacity to mobilise substantial domestic capital to finance strategic national priorities, reduce our reliance on external borrowing and strengthen Kenyan economic resilience," Ruto said during the listing of the Linzi Asset backed security at the Nairobi Securities Exchange. At the same time, the Opposition accused the government of allowing importation of 25,000 metric tons of sugar claiming it had been declared unfit for human consumption at its port of origin. "We are aware of a cargo of 25,000MT of sugar that recently landed in Port of Mombasa. These 25,000 MT of sugar are already on their way to a Western Kenya sugar factory to be repackaged and sold to unsuspecting Kenyans," Karua added. She added: "This is a criminal regime that not only resorts to willful violence against its people, resorts to physically harming its populace unfit for public consumption of goods, but also attempts to limit its people via willful and defunding education which is a right." Criticising Treasury CS John Mbadi's remarks that the government could no longer sustain free primary and secondary education, the opposition said the move was an affront to the Constitution. Article 43(1)(f) guarantees the right to education for everyone, while Article 53(1)(b) specifically ensures every child's right to free and compulsory basic education. "Hence defunding education is not only insensitive but unconstitutional. We must tell the illegitimate Ruto regime that Kenyans want education, health and other basic needs, not handouts in the name of empowerment," the leaders said in a statement. They also called for prosecution of Interior CS Kipchumba Murkomen and Inspector General of Police Douglas Kanja whom they accused of abetting "assassination attempts" on them. They called on the Independent Police Oversight Authority (IPOA) to take the evidence they presented to the body seriously. "We expect IPOA to treat this evidence with the grave importance it deserves, any attempt to take the life of any human, regardless of ethnicity, gender, or rank, ought to be condemned strongly," they said.

How the new loan model is daylight theft

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