Treasury Cabinet Secretary John Mbadi has 45 days to make known to Kenyans the country’s foreign debts, bonds, or contracts signed on behalf of the country. This is after a High Court ruling on the matter that has been in the public limelight since the signing of the contract to build Standard Gauge Railway (SGR) in 2014.
In a ruling by High Court Judge Lawrence Mugambi on Friday, December 13, Mbadi and the Attorney General were directed to provide the information and explanation concerning how the funds raised from the sovereign bonds were or have been spent.
The judge was ruling over the case petitioned by the Kenya Human Rights Commission (KHRC), and Wanjiru Gikonyo filed 2022 when the petitioners sued the government after it failed to provide 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.
Treasury Cabinet Secretary John Mbadi addressing members at a previous parliamentary committee meeting.
Parliament of Kenya
CS Mbadi and the AG are expected to relay the information on public debt and Treasury bonds to the KHRC.
In February 2022, the KHCR and Wanjiru Gikonyo wrote to the government in a letter addressed to the Treasury Ministry seeking clarification and information on the list of Kenya’s sovereign bondholders, including beneficial ownership information of the issuing companies, among other issues.
The state failed to provide the information, urging that it was already available in the state’s annual budget policy, which is available in the public domain. Additionally, the government argued the petitioners failed to demonstrate the necessity of the documents sought.
According to the Ministry, the annual budget policy outlines information for all the monies borrowed each year, so they did not need to provide additional information.
However, Justice Mugambi has compelled the CS to provide the information, noting that their reasons were not justifiable. Mugambi noted that the records in the public only provided records and proposals for borrowing and not records of what has been borrowed.
Mugambi termed the refusal by the state to supply the information sought as a violation of the right of access to information and the principle of openness and accountability in financial matters.
“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.
If Mbadi and the AG fail to provide the information, then they will have violated the principles of openness and financial accountability in matters of public finance, Mugambi ruled.
A photo of the entrance of the National Treasury offices in Nairobi taken on March 16, 2018.
Photo
National Treasury