Busia Senator Okiya Omtatah has alleged that Kenya has successfully cleared all its debts and, astonishingly, even surpassed the required payment by an impressive Sh1 trillion. The Senator asserts that government records indicate consistent payments to lenders, although the debt portfolio has not been updated over the years.
According to Omtatah, funds are being disbursed from the exchequer (National Treasury) but are not allocated towards debt repayment as intended. Instead, he alleges that a select few individuals benefit from these misappropriated funds.
“Kenya has overpaid its debt by more than Sh1 trillion; we do not owe anybody anything,” Omtatah said while speaking on Spice FM.
He further explained that a balance sheet analysis reveals an excess in debt repayment upon examining the legitimate borrowing and government repayments.
Omtatah raises serious concerns about the mismanagement of borrowed funds, asserting that some of the money has not even entered the nation’s consolidated fund but has been diverted to offshore accounts.
The Senator claims that during the administration of President Uhuru Kenyatta, the Public Finance Management Act was amended to facilitate this diversion of funds into offshore accounts, acting as conduits for storing money, asserting that borrowed money should rightfully be directed to the consolidated fund, subject to appropriation by parliament and the Controller of Budget.
One specific example Omtatah highlights is the Standard Gauge Railway (SGR) project, a multi-billion project where he alleges that the construction funds were transacted in China but still recorded as debt in Kenya. He insists that not a single coin was received in Kenya, as the entire payment was made in Beijing. He claims to have challenged this issue and successfully brought it before the Supreme Court, which declared it unconstitutional.
Furthermore, Omtatah directs attention to the Office of the Auditor General (AG), suggesting that they fail to conduct comprehensive balance sheet audits. He contends that the misappropriation of funds occurs during the revenue allocation stage, where the AG fails to cross-check the disbursement of funds from the Treasury to the intended recipients. This, in turn, allows for discrepancies between declared and received amounts.
Omtatah argues that it is crucial to hold all individuals who have held executive positions accountable and conduct a public audit of government accounts. He pointed out that high-level individuals from the previous regime should be brought in for questioning. He stresses the importance of external institutions conducting a thorough audit of the public debt and demanding answers from those responsible.
It is worth noting that Kenya’s public debt is projected to reach Ksh.9.4 trillion by June, already surpassing the Treasury’s target of 55 percent of GDP. This revelation by Senator Omtatah raises significant concerns about the country’s management and allocation of public funds when the government has proposed increasing taxation.
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