The Central Bank of Kenya (CBK) has formally supported a constitutional petition filed by Busia Senator Okiya Omtatah and other petitioners seeking to declare a significant portion of Kenya’s public debt as unconstitutional under the doctrine of odious debt. The case, filed as Petition E216 of 2025, was submitted to the High Court in Nairobi on April 24, 2025.
On June 4, 2025, Omtatah announced that the CBK had submitted filings endorsing the petition’s stance that Kenya’s current debt structure raises “substantial constitutional questions” regarding illegal borrowing, public finance mismanagement, and violations of the Public Finance Management Act (PFMA) and the Constitution.
Petition Details
The petition, led by Okiya Omtatah alongside eight other petitioners, including activists and professionals such as Dr. Magare Gikenyi, Eliud Matindi, and others, claims that between FY 2014/2015 and 2023/2024, the National Executive borrowed approximately KSh 6.95 trillion, including Eurobond proceeds, without the requisite parliamentary approval as mandated by Article 211 of the Constitution and Section 50 of the PFMA. According to the petitioners, only KSh 2.79 trillion of the reported KSh 13.11 trillion public debt was lawfully approved by Parliament, rendering the remainder illegitimate.
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The petitioners invoke the legal principle of odious debt, which declares that sovereign debt incurred without the consent of the people and not used for their benefit (e.g., through corruption or mismanagement) should not be enforceable. They argue that much of Kenya’s debt, particularly Eurobond funds, was misappropriated or deposited into offshore accounts rather than the Consolidated Fund, in violation of constitutional provisions and the PFMA.
The petition highlights a KSh 6.16 trillion discrepancy between debt records of the CBK and the National Treasury, alleging severe mismanagement. It also claims that Kenyan taxpayers overpaid KSh 2.37 trillion in debt repayments due to unauthorized loans, with funds not tied to verifiable development projects. The petitioners further assert that Eurobond proceeds were unlawfully handled, with no corresponding development outcomes.
CBK’s Position
In its court filings, the CBK backed the petition agreeing that it raises “substantial constitutional questions” on illegal borrowing, debt mismanagement, and abuse of public finance. The CBK also supported the petitioners’ request for the empanelment of a multi-judge bench to hear the case, given its complexity and public interest implications.
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“The Central Bank of Kenya (CBK) has officially backed our petition on ODIOUS DEBT… A monumental step in the fight for justice, accountability and economic liberation for Kenyans, now and in future.” Omtatah posted on X.
Accusations and Respondents
The petition names 22 individual respondents, including former President Uhuru Kenyatta, Treasury officials Henry Rotich, Ukur Yatani, and current Cabinet Secretary Njuguna Ndung’u. Others include CBK Governor Kamau Thugge, former and current Controllers of Budget Margaret Nyakang’o and Agnes Odhiambo, Auditor Generals Nancy Gathungu and Edward Ouko, and officials from the Ethics and Anti-Corruption Commission, including former CEO Halakhe D. Waqo.
Institutional respondents include the National Executive, National Assembly, CBK, and the International Monetary Fund (IMF), all accused of either enabling or failing to prevent unconstitutional borrowing practices and debt mismanagement.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.