Court to decide on bench for Omtatah debt case

Busia Senator Okiya Omtatah at the Bunge Towers, Nairobi on July 29th, 2024. [Elvis Ogina, Standard] The High Court is expected to rule tomorrow, June 19, on whether the petition challenging the country's public debt practices should be heard by a multi-judge bench. The case seeks to address claims of illegal borrowing and financial mismanagement by the Executive. This is after the Central Bank of Kenya (CBK) yesterday urged Justice Bahati Mwamuye to refer the petition filed by Busia Senator Okiya Omtatah, Dr Magare Gikenyi, activist Eliud Matindi, and six others to Chief Justice Martha Koome for empanelment of a bench, citing the gravity and novelty of the issues raised. Represented by Iseme Kamau & Maema Advocates, CBK, listed as the 19th respondent in the petition, has filed 11 grounds supporting the petitioners' request for a multi-judge bench. The bank argues the matter raises "substantial questions of law" under Article 165(4) of the Constitution and therefore, should be heard by more than one judge. "The petition raises contested substantial issues of undoubted public importance. We seek that you refer the matter to Chief Justice Koome to appoint an even number of judges," the CBK lawyer urged Justice Mwamuye. CBK further contends that the petition has profound implications for the country's financial stability and the socio-economic rights of current and future generations. The petitioners are demanding accountability for the country's rising public debt, which has reached Sh4.6 trillion, and are seeking to restrain President William Ruto's administration from incurring or repaying any new debts not expressly approved by Parliament within the national budget framework. They allege that President Ruto, his predecessor Uhuru Kenyatta, and their respective administrations engaged in "rampant and unconstitutional borrowing" that now threatens to push the country into a full-blown debt crisis. "Even as this case is being filed, President Ruto is reported to have incurred loans worth Sh143 billion from China without the approval of Parliament. The money is borrowed outside the national budget, the Appropriation Act, 2024, and therefore, is not tied to any development projects," Omtatah states in the petition. In stark figures, the petition alleges that between July 1, 2024, and March 28, 2025, the National Executive borrowed Sh1.045 trillion despite the national budget allocating only Sh170 billion for development. "That means over the period, they have unlawfully and unconstitutionally borrowed approximately Sh875 billion, which amounts to Sh97 billion per month, Sh3.24 billion per day, and Sh135 million per hour," reads part of the petition. The petitioners estimate that Kenya's "odious debt" stood at Sh13.1 trillion as of November 30, 2024, debt they say was similarly acquired in violation of the Constitution. The lawsuit accuses the Executive of borrowing billions without parliamentary oversight, undermining the integrity of Kenya's public finance system. The petitioners seek urgent court orders barring Ruto's government from taking or repaying any new loans unless they are approved transparently and in compliance with the Constitution and the Public Finance Management Act (PFMA). Omtatah also wants the court to hold retired President Uhuru and his administration personally liable for unconstitutional borrowing and to surcharge them under Article 226(5) of the Constitution. A key argument is that the public has neither been consulted nor informed about these debts.

Court to decide on bench for Omtatah debt case

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Court to decide on bench for Omtatah debt case

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