Saturday 18th April, 2026 06:57 AM|
Safina Party Deputy President-designate and Jimi Wanjigi’s running mate, Willis Evans Otieno, has renewed public scrutiny on Kenya’s Eurobond management through a social media post dated April 18, 2026.
Otieno referenced long-standing concerns over transparency and accountability in the handling of funds borrowed through sovereign bonds.
In his X post dated April 18, 2026, Otieno cited a statement attributed to the late Raila Odinga made on January 14, 2016, in which he named then-Treasury Cabinet Secretary Henry Rotich and Principal Secretary Kamau Thugge as key officials linked to the management of the 2014 Eurobond proceeds.
Odinga had raised concerns over Ksh 140 billion that he said could not be clearly traced through public financial systems and called for resignations and prosecutions.
“At the heart of his argument was a deeper indictment: that constitutional safeguards on accountability, oversight, and public finance management had been fundamentally undermined,” Otieno wrote. He also stated: “Eurobond billions were borrowed in our name. Where is that money? Who is accountable?”
Public debt context and borrowing framework
Kenya’s public debt has continued to rise, surpassing Ksh 12 trillion, with the government relying on external and domestic borrowing to finance budget deficits and refinance maturing obligations. Sovereign bonds have remained a key instrument in mobilising international capital for infrastructure and fiscal support.
The Eurobond programme, introduced in 2014, has been used to support development financing and liability management operations. Successive issuances have targeted sectors including infrastructure, energy, and budgetary support, alongside refinancing of existing external debt obligations.
Concerns over debt transparency and utilisation have periodically emerged in public discourse, with oversight bodies and parliamentary committees examining how borrowed funds are allocated and reported within the national budget framework.
Audit findings and utilisation of proceeds
Recent audit findings by Auditor-General Nancy Gathungu have raised questions over the utilisation of proceeds from a 2025 Eurobond issuance. Kenya raised approximately Ksh 188.35 billion from the bond, which carried a 9.5 per cent interest rate and was primarily intended for refinancing and liability management.
According to the audit, Ksh 78.3 billion was used for the intended buyback of an existing Eurobond worth Ksh 117 billion. A further Ksh 30 billion was redirected to address domestic borrowing shortfalls pending expected external financing inflows. The report questions the regularity and effectiveness of about Ksh 110 billion in proceeds.
“In the circumstances, the regularity and effectiveness in the utilisation of the Ksh 110 billion proceeds of the Eurobond could not be confirmed,” Auditor-General Gathungu stated.
The audit also raised concerns over compliance with bond covenants restricting the use of proceeds and noted uncertainty over the reimbursement of diverted funds.
