Amani National Congress (ANC)Party leader has urged Jubilee government to reduce its appetite for foreign loans.
The former Vice President (VP) argues that public debt is too high and should worry the government.
Speaking during the Labour Day celebrations at Uhuru Park in Nairobi on Wednesday, Mudavadi said high foreign debt is burdening Kenyans.
"We must look at public debt as we analyse Kenyas' problems. Deni la umma ni kubwa sana na hilo ndilo linafanya ushuru uongezwe kila siku (public debt is too high and that is the reason taxes are being increased)," Mudavadi said.
The Amani Party leader observed that while the government is allowed tp borrow it has to do it within the set standards and limits.
He warned that Kenyans will continue to be overburdened with taxes if the government does not check its foreign borrowing.
The Jubilee government has been on the spot over alleged high public debt.
A section of politicians across the divide has been callinf on the government to reduce on foreign loans.
Last most Makueni Senator Mutula Kilonzo Junior said that Chinese loans poses a threat to Kenya's sovereignty.
The country's foreign public debt is said to be at Sh5.3 trillion with China being the highest lender.
The governemnt has however defended its appetite for loans, saying it needs the borrowing to implement projects.
In an inteview on Citizen TV Day break last week, government spokesperson Eric Kiraithe said the government is within its foreign loans limit.