A significant legal petition has been filed with the Milimani Law Court, raising concerns about Kenya’s public debt and the government’s borrowing procedures.
The petitioner, Operation Linda Ugatuzi, has called for a halt to further government borrowing until a comprehensive audit of the country’s debt is conducted. The petition also seeks to rectify discrepancies in debt data published by the National Treasury and the Central Bank of Kenya.
In an affidavit presented by Prof. Fred Ogola, Operation Linda Ugatuzi argues that amendments made to the Public Finance Management Act in 2014 enabled the government to borrow funds without proper authorization from parliament.
These changes allegedly circumvented constitutional requirements regarding the allocation of foreign aid and government borrowings. The petitioner contends that this led to a surge in public debt, including unauthorized debts that cannot be linked to specific development projects.
The petition further emphasizes the lack of transparency surrounding Kenya’s public debt. Operation Linda Ugatuzi cites disparities between figures presented by the Central Bank of Kenya and those authorized by the Appropriation Act.
Prof. Ogola claims that the government has incorporated over Ksh4.098 trillion into the total public debt without proper parliamentary approval, raising questions about the legitimacy of these borrowings.
One of the core requests in the petition is for the High Court to mandate an independent audit of all existing loans before the government is allowed to take on new facilities.
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This audit would ensure accuracy and transparency in reporting the country’s debt. Additionally, the petition calls for the publication of a correct and verified debt status by relevant government departments following the audit.
The Central Bank of Kenya reports that as of December 2022, the country’s public debt stands at Ksh9.145 trillion ($73 billion), equivalent to 68.5% of the Gross Domestic Product.
This debt comprises domestic debt held by various creditors, publicly-guaranteed debt, and external debt owed to foreign creditors. The petition questions the validity of these figures and urges a comprehensive review of borrowing practices.
Operation Linda Ugatuzi petition seeks to ensure accountability, transparency, and adherence to legal procedures in Kenya’s borrowing and public debt management.
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The petitioner’s concerns revolve around alleged unauthorized borrowing, discrepancies in reported debt figures, and the need for an independent audit to address these issues. The case highlights the importance of fiscal responsibility and transparency in the country’s financial practices.
