How Ruto, Uhuru allegedly borrowed Sh13trillion without approval

President William Ruto pays a courtesy call to Former President Uhuru Kenyatta at his Gatundu Home on December 09, 2024. [PCS,Standard] The government borrowed a total of Sh13 trillion, which it cannot account for, nor was the money used to benefit Kenyans or approved by Parliament, the High Court has heard. This startling allegation-that both President William Ruto and his predecessor, Uhuru Kenyatta, went on a borrowing spree and that the money ended up in a dark, bottomless hole-is contained in a case filed before High Court judges John Chigiti, Roselyn Aburili, and Lawrence Mugambi. Busia Senator Okiya Omtatah, activists Nyakina Gisebe and Bernard Muchiri, UK-based Kenyan Karanja Matindi, and Nakuru-based surgeon Magare Gikenyi have detailed in a 166-page petition how much the two presidents allegedly borrowed from foreign partners and through Eurobond, and how the funds were spent. They conclude that former President Uhuru should be compelled to refund Sh4.6 trillion to the National Treasury, and President Ruto Sh2.5 trillion. The petitioners claim that Uhuru is responsible for Sh4.5 trillion borrowed as odious debt between 2014 and 2022. At the same time, they argue that Dr Ruto should equally bear responsibility for the Sh2.2 trillion borrowed under his administration between 2022 and 2025. "Petitioners reiterate that these debts were both unconstitutional and unlawful and, therefore, odious because the respondents borrowed the loans despite them not being included in the Appropriation Acts (national budgets) of the respective financial years as approved by Parliament and signed into law by the President. Additionally, they were not tied to any public development projects," court papers filed last week state in part. The respondents in the suit include both former and current government officials: former President Uhuru, President Ruto, the Treasury Cabinet Secretary and his Principal Secretary, the Director-General of the Public Debt Management Office, the Attorney General, Controller of Budget Margaret Nyakang'o, the National Assembly, former Controller of Budget Agnes Odhiambo, and former Auditor General Edward Ouko. Others named include former Treasury Cabinet Secretaries Henry Rotich, Njuguna Ndung'u, and Ukur Yatani, current Auditor General Nancy Gathungu, Central Bank Governor Kamau Thugge, the Ethics and Anti-Corruption Commission (EACC), and the International Monetary Fund (IMF). The Senate has been listed as an interested party. The petitioners claim that during Uhuru's tenure, public debt rose from Sh2.3 trillion-an amount that, according to them, had taken Kenya 50 years to accumulate-to Sh6.2 trillion by 30 June 2022, in just eight years, contrary to constitutional provisions. Omtatah, Gisebe, Muchiri, Matindi, and Magare also place blame on President Ruto, who was then Deputy President, for allegedly continuing the trend of unlawful borrowing. They claim that his administration borrowed Sh208 million in June 2024 to buy back Eurobond notes, despite this being a direct charge already factored into the Consolidated Fund. Further, they allege the Ruto administration borrowed an additional Sh2.2 trillion over and above the Sh884 billion allowed by the Appropriation Acts of 2022, 2023, and 2024. The petition also mentions an 'on-lent loan' of Sh50 billion from the International Monetary Fund. Their primary grievance is that the two presidents borrowed funds without following legal procedures, without parliamentary approval, and without inclusion in the national budget, raising concerns over transparency and accountability. "The odious debts, including the Eurobonds, amounting to Sh6.95 trillion, were unlawfully and unconstitutionally incurred by the respondents between the financial years 2014/2015 and 2024/2025 (up to 30th November 2024)," the documents state. They further claim that there is no evidence that any of the borrowed funds were tied to development projects or served the public good. "There is no evidence that proceeds of these impugned loans were used for the common good. In particular, they were not used for any development projects as required by law," the petitioners state. They argue that just as individuals are not expected to repay debts fraudulently acquired in their names, Kenyans should not be held liable for debts incurred by their leaders outside the law. Instead, the two presidents should be held personally accountable and repay the funds from their own resources. They also target escrow accounts allegedly opened in JP Morgan Chase and Citi Bank, claiming that the Central Bank Governor illegally opened these accounts to bypass constitutional oversight. For example, court documents cite an unexplained Sh710 million in extra Eurobond funds during the 2014/2015 financial year, despite the budget having been fully financed through taxes, loans, and grants. "Hence, there was absolutely no need to entangle Kenyans in the Eurobond loan trap," the court was told. They accuse the Treasury Cabinet Secretary of enabling illegal borrowing, which they say led to Kenya's ballooning debt of Sh11.5 trillion, with annual repayments averaging Sh1.7 trillion. However, the Attorney General has asked the court to strike out the petition. The government's legal advisor argues that the petitioners took too long to amend their case as previously directed. "The applicants have not discharged the burden of laying a cogent basis for the over 10 months' inordinate delay in filing an Amended Petition, as ordered by the Court on 5 March 2024, to the satisfaction of the court and the respondents," AG's lawyer Samwel Kaumba responded.

How Ruto, Uhuru allegedly borrowed Sh13trillion without approval

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