Kenya’s Current Debt 7.19 Trillion

7,190,296,000,000

Join the movement to prevent Kenya
from crash landing into an economic
meltdown on our watch.

Kenya’s Current Debt

7,190,296,000,000

Join the movement to prevent Kenya
from crash landing into an economic
meltdown on our watch.

DISCOVER THE TRUE DEBT IN VALUE

OVER KSH 7.19 Trillion

Ksh. 7.7B

unaccounted for COVID-19 Funds by counties could be used to establish

A Vaccine
manufacturing
facility

Ksh. 7.8B

misappropriated by KEMSA in shady COVID-19 equipment scandal could have been enough to purchase

52,000
ICU Beds

Ksh. 11B

lost through irregular offshore payments during the construction of Arror and Kimwera dams could have supplied

1 million

Kenyan homes

with one bag of maize and one bag of beans.

Ksh. 21.7B

lost through SGR Operations could have financed

33%

of Kenya’s 10 year climate change action plan that will help protect Kenyan farmers among other things.

Ksh. 1.9B

lost through the NYS Scandal could be enough to build

2,346

new classrooms

for the CBC pioneer class expected to transition to junior secondary school in 2023.

Ksh. 215B

misappropriated through Eurobond 1 could have been enough to finance

68% of county budgets

in the 2020/2021 financial year.

Ksh. 7.7B

unaccounted for COVID-19 Funds by counties could be used to establish

A Vaccine
manufacturing
facility

Ksh. 7.8B

misappropriated by KEMSA in shady COVID-19 equipment scandal could have been enough to purchase

52,000
ICU Beds

Ksh. 1.9B

lost through the NYS Scandal could be enough to build

2,346

new classrooms

for the CBC pioneer class expected to transition to junior secondary school in 2023.

Ksh. 215B

misappropriated through Eurobond 1 could have been enough to finance

68% of county budgets

in the 2020/2021 financial year.

Ksh. 11B

lost through irregular offshore payments during the construction of Arror and Kimwera dams could have supplied

1 million Kenyan homes

with one bag of maize and one bag of beans.

Ksh. 21.7B

lost through SGR Operations could have financed

33%

of Kenya’s 10 year climate change action plan that will help protect Kenyan farmers among other things.

LEARN HOW WE GOT HERE.

Expensive Debt

Kenya has over the last few years increased uptake of debt on commercial terms and has been accumulating high levels of public debt with limited transparency in decision-making and accountability as to the proceeds of the debt procured, contrary to the constitutional principles of public finance management. External debt must be paid back in the currency in which it is borrowed, and this poses an issue as Kenya is unable to acquire adequate amounts owing to its decline in market share. As a result, Kenya is drowning in debt, and is at high risk of debt distress, with debt transparency proving to be a major concern. The debt levels in Kenya are unsustainable and an imminent threat to Kenya’s economic and political stability.

Poor Investments

The government has imprudently accepted large, costly, and risky investments and channelled public debt resources towards project of questionable return. Public funds have been directed towards the development of populist nationalist flagship projects and oversight reports point towards massive irregularities in public debt funded projects, several of which have been cited in the Auditor General’s reports and may be deemed as examples of budgeted corruption. These projects have been justified by the guise of development, but there is a lack of evidence of their development impact. Examples of these include NYS I & II scandal, Eurobond scandal, Arror/Kimwarer dams, SGR projects and the Medical Equipment Service (MES) award of tenders.  

Corruption & Tax Evasion

Corruption has become a determinant of expenditure and the driver of a massive budget deficit which has caused the resultant debt crisis. Gaps in the Kenyan Constitution and Public Finance Management Act have been exploited by public officials to use corruption in the procurement of high levels of debt, particularly around the flagship projects. The lack of adequate information linking public debt to expenditure due to opacity in the exchequer account has created massive opportunities for corruption. For example, the 2019 Special Audit Report of the Auditor General on the Proceeds and Utilisation of Eurobond states that the Eurobond proceeds were received and came into the National Exchequer Accounts in the Central Bank of Kenya, therefore could not be traced to any infrastructure project.

Expensive Debt

Kenya has over the last few years increased uptake of debt on commercial terms and has been accumulating high levels of public debt with limited transparency in decision-making and accountability as to the proceeds of the debt procured, contrary to the constitutional principles of public finance management. External debt must be paid back in the currency in which it is borrowed, and this poses an issue as Kenya is unable to acquire adequate amounts owing to its decline in market share. As a result, Kenya is drowning in debt, and is at high risk of debt distress, with debt transparency proving to be a major concern. The debt levels in Kenya are unsustainable and an imminent threat to Kenya’s economic and political stability.

Poor Investments

The government has imprudently accepted large, costly, and risky investments and channelled public debt resources towards project of questionable return. Public funds have been directed towards the development of populist nationalist flagship projects and oversight reports point towards massive irregularities in public debt funded projects, several of which have been cited in the Auditor General’s reports and may be deemed as examples of budgeted corruption. These projects have been justified by the guise of development, but there is a lack of evidence of their development impact. Examples of these include NYS I & II scandal, Eurobond scandal, Arror/Kimwarer dams, SGR projects and the Medical Equipment Service (MES) award of tenders.  

Corruption

Corruption has become a determinant of expenditure and the driver of a massive budget deficit which has caused the resultant debt crisis. Gaps in the Kenyan Constitution and Public Finance Management Act have been exploited by public officials to use corruption in the procurement of high levels of debt, particularly around the flagship projects. The lack of adequate information linking public debt to expenditure due to opacity in the exchequer account has created massive opportunities for corruption. For example, the 2019 Special Audit Report of the Auditor General on the Proceeds and Utilization of Eurobond states that the Eurobond proceeds were received and came into the National Exchequer Accounts in the Central Bank of Kenya, therefore could not be traced to any infrastructure project.

Read the Report

Download The Snapshot
Download Summarized report
Download Kenya Debt Crisis
Download Citizen Manifesto

KNOW WHAT YOU CAN DO.

Join the movement and take part in our petitions to hold government accountable.

Jihusishe
Dial *821*100#

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THE Initiators

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The Institute for Social Accountability (TISA).
+254 (020) 4443676 / 757 129700
info@tisa.or.ke

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