Kenya’s Auditor General Begins National Debt Audit Amidst Political and Economic Pressures

Nairobi, Kenya – Kenya’s Auditor General has commenced a critical examination of the nation’s debt, as announced by Finance Minister John Mbadi. This audit aims to clarify the amounts owed to various creditors and address long-standing demands for greater transparency in the country’s financial management.

Kenya’s national debt currently stands at 10.5 trillion shillings ($81.71 billion). The decision to undertake this audit follows significant public pressure, particularly from anti-tax hike protesters who demanded greater accountability. Their activism led the government to abandon a series of proposed tax increases in June.

Finance Minister Mbadi confirmed that the audit has already begun, although he did not provide specific details regarding the scope of the investigation or a timeline for the report’s completion. The Auditor General’s office, an independent constitutional body funded by the state, is tasked with this important review.

The call for an audit gained momentum during intense protests that saw over 50 fatalities and led to President William Ruto’s decision to halt the government’s controversial financing law. The protests also resulted in several credit downgrades from major global ratings agencies, highlighting the urgent need for financial reform and transparency.

Initially, President Ruto appointed a special committee to oversee the debt audit. However, this move was met with criticism, and key appointees, including the head of the Law Society of Kenya, refused the positions, arguing that the audit should be conducted by the Auditor General.

During his parliamentary vetting, Finance Minister Mbadi had committed to enhancing “debt accountability” to provide the public with a clearer understanding of the nation’s financial obligations. This commitment underscores the government’s effort to restore confidence and stabilize the economic situation.

In addition to the national audit, a team from the International Monetary Fund (IMF) is currently in Kenya conducting a fact-finding mission. This visit is part of the process leading up to the IMF board meeting, where Kenya’s latest programme review and a proposed $600 million disbursement will be considered.

For continuous updates on the debt audit, the IMF mission, and other developments in Kenya’s economic and political landscape, stay connected to our website.