Lobby Group Wants Kenya Stopped From Borrowing New Loans

Operation Linda Ugatuzi has filed a petition at Milimani law court seeking to prevent the National Treasury from borrowing and allowing any government borrowing until the country’s debt is audited.

Operation Linda Ugatuzi further requests that the court direct the National Treasury and Central Bank of Kenya to rectify the country’s debt data on their respective website.

In an affidavit by Prof. Fred Ogola, Linda Ugatuzi argues that the National Assembly in 2014 made some amendments to the section 50 (97) of the Public Finance Management Act no.18 of 2012, amendments which Operation Linda Ugatuzi claims opened floodgates for the government to borrow money which he claims were not authorized by any appropriate act of parliament as required by law, thus violating the constitution.

Further, he argues that the amendment did away with the mandatory constitution requirement that money received in from of foreign aid or borrowings from the government should be paid into the consolidated fund or the other three public funds established by the constitution.

Similarly, he says that as of 2014/15, the country’s outstanding debt was at Ksh.2.37 trillion, a figure that has tremendously increased.

He argues that the increment has been caused by illegal public debts through schemes of the National treasury.