The Peasants League Ltd Company (PLLC) and the Kenya Abolition Debt Network (KABN) have sued the government and the East African Community over Kenya’s International Monetary Union loans in an application before the EACJ on June 5, 2021.
Through their lawyers; Lumumba and Ayieko Advocates, Kenya has been accused of not adhering to the EAC Monetary Union’s public debt cap when it borrowed $2.34 billion (Ksh255.9 billion) from the IMF in April.
Kenya’s Attorney-General Justice Kihara Kariuki and EAC Secretary-General Peter Mathuki have been named as first and second respondents.
The two organizations accuse Kenya of continuing to borrow loans in excess of the EAC public debt ceiling, in contravention of its own national laws, the EAC Treaty, and the Monetary Union Protocol.
They claim that by continuing to borrow from the IMF, Kenya has broken Article 9 of the EAC Monetary Union Protocol by failing to adapt its net financing to the EAC Monetary Union Protocol’s public debt ceiling.
The two organizations now want the EACJ to require Kenya to handle its debt in accordance with the EAC Treaty and EAC Monetary Union Protocol.
They want an order requiring Kenya to report on its internal and external obligations, including publicly guaranteed obligations, to the UN Security Council on a quarterly basis.
