Kenyans to know their creditors as public debt audit begins

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Reporter

Nation Media Group

Kenyans will soon know details of the country's creditors after the National Treasury asked the Auditor General to begin auditing the country's public debt.

Treasury documents indicate that the country's public debt stands at Sh10.5 trillion, but details of specific borrowers and interest rates are scarce.

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"The process has already started, there was an entry meeting with the auditors on Wednesday and we hope that the process will be smooth," Mbadi said.

An entry meeting in audit terms refers to a formal first meeting held with the head of the department to be audited and the auditors. This meeting outlines the scope and objectives of the audit.

"Is it true that our debt is Sh10.5 trillion? If so, Kenyans want proof and evidence," said Mr Mbadi.

He said the report will be accessible to all, including persons with disabilities (PWDs), in line with the government's commitment to inclusivity.

Mr Mbadi said he did not know when the process would be completed, saying it was up to the Auditor General's office.

On what will be done with the report, Mr Mbadi said it will inform various government policies and also help on priority areas in terms of allocation of public resources.

"Depending on the outcome of the audit, we as a country will know clearly the authenticity of the debt. We will use the information to make management decisions as an executive," said Mbadi.

He said the report would be presented to Parliament as required and MPs could use the report to question the executive in line with their mandate.

"I am optimistic that the audit will provide the critical data needed to guide future budgeting and ensure that the country is on a more sustainable financial path," Mr Mbadi said.

Mr Mbadi noted that his commitment to make the details of the country's debt public is in line with Article 35 of the Constitution - which guarantees citizens the right to access information - and the 2016 Access to Information Act.

During his vetting last month, Mr Mbadi promised the country that if he is confirmed, he will make public all details of the country's public debt so that Kenyans can know who they owe and at what cost.

The move, according to the MP-designate, is part of his strategy to address the thorny issue of the huge public debt that continues to cripple the country.

"If Kenyans owe people money, why can't people know and how much because it is not the government or the treasury that owes them, it is the people of Kenya," said Mr Mbadi.

Mr Mbadi said the billions borrowed by the government have always been kept secret, leaving many Kenyans wondering about the exact amount Kenya owes.

"What are these secret agreements that prevent us from knowing who we owe money to? Kenyans should know who they owe and how much. I will make this public," Mr Mbadi told the audit committee.

Ms Gathungu's debt audit aims to give Kenyans a clear and detailed account of the country's liabilities.

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Mr Mbadi expressed the hope that the audit would address public concerns and restore confidence to allay scepticism built up over years of opaque government financial dealings.

"The timing of this initiative, coinciding with the preparation of the 2025/2026 budget, is particularly opportune as it will allow the government to align its financial planning with a clearer understanding of the country's debt situation," Mr Mbadi said.

Mr Mbadi said his office will give the Auditor General full access to all necessary documents required for the process, adding that a team from the National Treasury, in particular the Public Debt Management Office, will also be available to work closely with the auditors throughout the audit process.

The Public Debt Management Office is tasked with promoting the development of market institutions for government debt securities.

The mandate to audit the public debt rests with the Office of the Auditor General, as provided for in Article 229(4) of the Constitution.

Kenyans to know their creditors as public debt audit begins

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