Busia Senator Okiya Omtatah wants former President Uhuru Kenyatta and senior officials in his administration held accountable for the country’s loans amounting to Sh4.6 trillion borrowed during his tenure.
He also argues that Sh2.2 trillion taken during President William Ruto’s administration is “odious” debt. Mr Omtatah wants former Treasury Cabinet Secretary Njuguna Ndung’u, Controller of Budget Margaret Nyakang’o and Auditor-General Nancy Gathungu held liable for these loans.
Former Treasury Cabinet Secretary Njuguna Ndung’u.
Photo credit: File | Nation Media Group
Terming the loans, including the Eurobonds, as odious, Mr Omtatah and eight other petitioners seek to have Mr Kenyatta and former officials in his government surcharged under Article 226(5) of the Constitution for debts incurred between the 2014/15 and 2021/22 financial years.
President William Ruto (left) and former President Uhuru Kenyatta at State House, Nairobi, on September 12, 2022.
Photo credit: PSCU
In a petition filed at the High Court, they say the former regime misused its powers by borrowing and mishandling large sums of money, thereby burdening taxpayers.
The senator says the Eurobond loans were acquired without the approval of Parliament, adding that the money was deposited in offshore accounts.
Auditor-General Nancy Gathungu during a past event.
Photo credit: File | Nation Media Group
“By illegally placing the Eurobond funds into an offshore account instead of the Consolidated Fund, the government exposed the money to misuse. The petitioners believe this was done with improper or corrupt motives, without consideration for the public interest,” they state in the affidavit.
The petitioners say the government borrowed vast sums from domestic and international markets in violation of the Constitution, the Public Finance Management Act (PFMA) and other regulations.
Senator Omtatah argues that the Eurobond funds were spent without the Appropriation Act authorising withdrawals from the Consolidated Fund, in violation of Articles 222, 223 and 228 of the Constitution and that no parliamentary approval was granted.
They say public debt stock rose dramatically during Mr Kenyatta’s regime, from Sh2.37 trillion accumulated over 50 years by June 30, 2014, to Sh8.57 trillion in eight years.
“The decision by the National Treasury CS to borrow unconstitutionally has led to Kenya’s debt stock of Sh11.5 trillion, with annual repayment averaging Sh1.7 trillion,” the petition says.
Though annual tax revenues average Sh2.1 trillion, the petitioners say the country’s debt has created a situation where tax revenue is insufficient to cover loan repayments and the government operating and capital expenditure.
Controller of Budget Margaret Nyakang’o.
Photo credit: Francis Nderitu | Nation Media Group
“The Cabinet Secretary has further violated the law by borrowing to repay existing debts,” they say.
The nine petitioners want the court to declare the loans, including the Eurobonds, “fraudulent schemes used to steal substantial amounts from public coffers”.
“The petitioners pray that this court holds the responsible individuals personally liable for the loss of any money raised through the disputed loans and orders them to compensate the loss,” the petition states.
