‘Disclose ALL Foreign Debt, Its Contracts Within 45 Days!’ – Court Orders Treasury
Treasury Cabinet Secretary John Mbadi has 45 days to inform Kenyans of the country’s overseas loans, bonds, and contracts executed on its behalf.
Ruto Economics Scorecard
— Stay Hidden (@Stay_Hidden0) December 14, 2024
In 2023 alone, we've paid Ksh 1.56 Trillion in debts (debt redemption ONLY).
It reaches Ksh 2.37 Trillion if you add interest rate payments.
Remember, in June 2024, we had to service the Eurobond maturity of USD 2 billion. pic.twitter.com/NRLpKIFQzb
This follows a High Court verdict on the issue, which has been in the public eye since the signing of the contract to build the Standard Gauge Railway (SGR) in 2014.
On Friday, December 13, High Court Judge Lawrence Mugambi ordered Mbadi and the Attorney General to give facts and explanations about how funds raised from sovereign bonds were or have been utilized.
The judge was hearing the case petitioned by the Kenya Human Rights Commission (KHRC) and Wanjiru Gikonyo in 2022 when the petitioners sued the government for failing to deliver the information.
“The court has now ordered the State to provide, within 45 days: details of all debt agreements made on behalf of Kenya, information on sovereign bonds, and breakdown of expenditure of all borrowed funds,” read a part of Mugambi’s ruling.
The High Court has ordered Treasury CS John Mbadi to reveal details of Kenya's foreign debts and sovereign bond contracts within 45 days.
— Moe (@moneyacademyKE) December 14, 2024
Justice Mugambi also directed Mbadi and the Attorney General to explain how the sovereign bond funds were used
CS Mbadi and the AG are expected to inform the KHRC about public debt and Treasury bonds.
In February 2022, the KHCR and Wanjiru Gikonyo sent a letter to the Treasury Ministry, requesting clarity and information on Kenya’s sovereign bondholder list.
The demands included beneficial ownership information for the issuing firms, among other concerns.
The state declined to release the information, claiming that it was already available in the state’s annual budget policy, which is publicly available.
Furthermore, the government claimed the petitioners failed to justify the necessity of the requested documents.
According to the Ministry, the yearly budget policy includes information on all funds borrowed each year, thus they did not need to disclose any new information.
However, Justice Mugambi ordered the CS to give the information, stating that their explanations were not justifiable.
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Mugambi remarked that the public records only contained records of proposals for borrowing, not records of what was borrowed.
Mugambi described the state’s reluctance to provide the requested information as a violation of the right to access information as well as the principle of financial transparency and accountability.
“This shall be information on all sovereign bond agreements signed by the Government of Kenya and any bond that contains the terms and conditions in case of default as set out in the said letter,” Justice Mugambi mandated.
Mugambi decided that if Mbadi and the AG had not released the information, they will have violated the norms of transparency and financial responsibility in public finance.
‘Disclose ALL Foreign Debt, Its Contracts Within 45 Days!’ – Court Orders Treasury
