Ruto's quest to audit public debt hits a snag

President William Ruto during an engagement with youth on X space at State House, Nairobi. [PCS]

The Law Society of Kenya (LSK) has objected to President William Ruto’s order to establish a presidential taskforce to audit the country’s public debt, arguing the move is unconstitutional as the mandate rests solely with the Auditor-General.

In a statement yesterday, the LSK said the creation of the 90-day taskforce to conduct a forensic audit of public debt, as outlined in a recent gazette notice, usurps the powers of the Auditor-General under Article 229 of the constitution.

The article requires the Auditor-General to audit the public debt within six months after the end of each financial year, the LSK noted, citing a recent High Court ruling that affirmed the Auditor-General’s role in public audit matters.

“Taking cognisance of the provisions of Article 229 of the constitution and the interpretation of the said provisions by the court, it is our considered view that the establishment of the taskforce is unconstitutional,” the LSK said in the statement.

The society’s council has resolved that neither the LSK president nor any of its members will participate in the taskforce. The LSK urged President Ruto to refrain from undermining the Auditor-General’s constitutional authority through executive orders.

Instead, the LSK suggested the Office of Public Debt Management should provide the public debt details directly to the Auditor-General for the required forensic audit, rather than creating a separate taskforce at the cost of scarce public resources.

“Taking cognisance of the provisions of Article 229 of the constitution and the interpretation of the said provisions by the court, it is our considered view that the establishment of the taskforce is unconstitutional,” said LSK. 

“The mandate to audit public debt rests with the Office of the Auditor-General.

The council of the Law Society of Kenya has thus resolved that neither our president nor any of our members shall take up appointments or participate in the said taskforce.”

“Furthermore, the Office on Public Debt Management, headed by a Director-General at the Treasury and funded by public money, should provide details of public debt to the Auditor- General for forensic audit. It is essential not to squander scarce public resources by appointing a Presidential Taskforce to perform duties of existing public offices.”

President William Ruto earlier on Friday unveiled a raft of austerity measures following his rejection of the Finance Bill, 2024, as he formed a taskforce to undertake a forensic audit of the country’s public debt, which stood at Sh10.39 trillion by the end of March this year according to official statistics.

The task force has been tasked to carry out a comprehensive forensic audit of the country’s public debt and report within three months. It will be chaired by Nancy Anyango deputised by Prof Luis Franceschi.

The Institute of Public Accountants of Kenya chairman Philip Kaikai, Law Society of Kenya president Faith Odhiambo and Institute of Engineers of Kenya president Shammah Kileme and Vincent Kimosop were tapped to serve as members.

Dr Abraham Ruto and Dr Aaron Thegeya will serve as joint secretaries.

 The move came amid concerns over the accuracy of Kenya’s public debt figures and especially over how the loans were spent.

The mandate of the Presidential Taskforce on Forensic Audit of Public Debt includes verifying the current stock of public and publicly guaranteed debt.

It has also been tasked to reconcile the loan servicing/repayments with the attendant terms of the facility based on the relevant context and the terms of the loans; assess whether the country obtained value for money with regard to terms of the loan, cost of the projects financed, the return on investment and equity.