A petition has been filed at the Milimani law court seeking to prohibit the National Treasury from borrowing and allowing any government borrowing until the country’s debt is audited.
The petition by Operation Linda Ugatuzi also wants the court to direct the National Treasury and Central Bank of Kenya to rectify the country’s debt data on their respective website and all other places.
In an affidavit by Prof. Fred Ogola, Linda Ugatuzi argues that the National Assembly in 2014 made some amendments to the section 50 (97) of the Public Finance Management Act no.18 of 2012, amendments which the petitioner claims opened floodgates for the government to borrow money which he claims were not authorized by any appropriate act of parliament as required by law, thus violating the constitution.
He argues that the amendment did away with the mandatory constitution requirement that money received in from of foreign aid or borrowings from the government should be paid into the consolidated fund or the other three public funds established by the constitution
Similarly, he says that as of 2014/15, the country’s outstanding debt was at Ksh.2.37 trillion, a figure that has tremendously increased. He argues that the increment has been caused by illegal public debts through schemes of the National treasury.
It is also his argument that some of the country’s debts were never authorised by an appropriate Act as required by the law and cannot be linked to any development projects between the financial year 2014/2015.
