Treasury Cabinet Secretary John Mbadi has been given 45 days to disclose the country’s foreign debts, bonds, and contracts signed on behalf of Kenya.
In a decision delivered by High Court Judge Lawrence Mugambi on December 13, the court directed Mbadi and the Attorney General to provide detailed information regarding the use of funds raised from sovereign bonds. This ruling comes as a result of a petition filed by the Kenya Human Rights Commission (KHRC) and Wanjiru Gikonyo in 2022, after the government failed to release the requested 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 a breakdown of expenditure of all borrowed funds,” stated a portion of Judge Mugambi’s ruling.
The KHRC and Gikonyo had previously sought clarification from the Treasury Ministry regarding Kenya’s sovereign bondholders, including beneficial ownership details of the issuing companies. However, the state argued that the information was already available in the annual budget policy, asserting that the petitioners had not demonstrated the necessity for additional documents.
Justice Mugambi countered this argument, emphasizing that the records available to the public only included proposals for borrowing, not specifics about what has actually been borrowed. He deemed the government’s refusal to provide the information a violation of the right to access information and the principles of transparency and accountability in financial matters.
“This shall include all sovereign bond agreements signed by the Government of Kenya, along with the terms and conditions in case of default,” mandated Justice Mugambi. He further warned that failure to comply with this order would constitute a breach of the principles of openness and financial accountability regarding public finance.
As the deadline approaches, all eyes will be on CS Mbadi and the Attorney General to ensure compliance with the court’s ruling and uphold transparency in Kenya’s financial dealings.
