Kenyan Government Sued Over Recent IMF Loan

The Kenyan Peasants League (KPL) and the Kenya Debt Abolition Network (KDAN) have moved to the East African Court of Justice (EACJ) over the recent KES44 Billion (USD401 Million) International Monetary Fund (IMF) Loan to Kenya. Represented by Lumumba and Ayieko Advocates on pro-bono basis, the two organisations have sued the Attorney General of Kenya and the Secretary General of the East African Community (EAC) for failing to perform their responsibility of ensuring that the Kenyan Government maintains a ceiling of gross public debt at 50% of its Gross Domestic Product in Net Present Value terms as required by article 5(2)(b) as read with articles 6(2)(c) and 9 of the Protocol on the Establishment of the East African Community Monetary Union.

In the affidavit signed by David Calleb Otieno on behalf of the Kenya Debt Abolition Network and Dick Omondi Olela on behalf of the Kenyan Peasants League, the two organisations argue that the Kenyan Government has intentionally continued to borrow loans beyond the EAC public debt ceiling by relying upon the amendment of Regulation 26(1)(c) of the Public Finance Management Regulations 2015 which raised the Kenyan public debt ceiling to KES9 trillion in contravention of the set ceiling of 50% Gross Domestic Product in Net Present Value terms.

As for the Secretary General of the East African Community, the two organisations argue that the Council has abdicated it’s responsibility set out under article 14(3) of the Treaty by failing to put in measures including directives to ensure that Partner States including Kenya fully implement the macroeconomic convergence criteria established under article 6 of the East African Community Monetary Union Protocol.

Among the relief sought by the applicants include an order compelling the Kenyan Government to within ninety days to amend it’s Public Finance Management Act No. 18 of 2012 and Public Finance Management Regulations 2015 to align it’s public debt ceiling with East African Community macroeconomic convergence criteria set out under article 6 of the East African Community Monetary Union Protocol.

KPL Secretariat

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