By Andrew Kariuki

The Ethics and Anti-Corruption Commission (EACC) has defended its investigations into the controversial 2014/2015 Eurobond, dismissing allegations by Okiya Omtatah that billions of shillings were lost or misappropriated.

In a replying affidavit filed in court, EACC investigator Jemimah Githungu states that the commission carried out extensive investigations into the alleged loss of approximately KSh250 billion raised through the sovereign bond.

According to the affidavit, investigators examined documentation and recorded 56 statements from key public officials drawn from institutions including the National Treasury, the Central Bank of Kenya, and other government agencies.

The probe traced the Eurobond issuance process, noting that Kenya raised $2 billion in June 2014, followed by an additional $750 million through a tap sale later that year. The funds were initially held in offshore accounts at JP Morgan Chase Bank in New York before being transferred to accounts at the Central Bank of Kenya.

EACC maintains that the process adhered to legal and procedural requirements, including the procurement of lead managers and legal advisers through competitive and lawful means. It also argues that the use of offshore accounts was permitted under amendments to the Public Finance Management Act, allowing flexibility in handling external loans.

The commission concluded that the net proceeds—approximately KSh196.9 billion after loan repayments—were properly accounted for and transferred to the Consolidated Fund.

Following the investigations, EACC forwarded its findings to the Office of the Director of Public Prosecutions (ODPP), which independently reviewed the matter and, in May 2016, directed that the case be closed.

The affidavit further defends the conduct of the commission’s former chief executive officer, stating that public statements made in 2015 were issued in good faith and within the scope of official duties, and that the office holder is protected from personal liability under the law.

Omtatah, however, has challenged the findings, seeking to hold officials personally liable for over KSh4.6 trillion he claims is linked to the Eurobond.

EACC has dismissed the petition as “misleading and without merit,” urging the court to throw it out with costs, insisting there is no evidence of fraud or loss of public funds in the Eurobond transactions.