A motion has been submitted before the Milimani Law Court requesting that the National Treasury refrain from obtaining loans and that no government borrowing be permitted until the nation’s financial standing is audited.
The case filed by Operation Linda Ugatuzi also requests that the court order the National Treasury and the Central Bank of Kenya to correct the nation’s debt figures on their respective websites and elsewhere.
Linda Ugatuzi contends in an affidavit signed by Professor Fred Ogola that the parliament amended Section 50 (97) of the Public Finance Management Act No. 18 of 2012 in 2014. The plaintiff contends that the aforementioned modifications allowed the state to obtain funds without being authorized by a proper parliamentary act as stipulated by law, in violation of the constitution.
Prof. Ogola claims that the change eliminated the obligation in the constitution that any cash acquired in the form of foreign aid or borrowing from the government be deposited into the consolidated fund or any one of the three public funds specified by the constitution.
In a similar vein, he claims that Kenya’s total debt as of 2014–15 was Ksh. 2.37 trillion, a sum that has significantly escalated. He maintains that unlawful public debts incurred through National Treasury programs are to blame for the increase.
Additionally, he argues that certain debts of the nation cannot be connected to any development initiatives between the fiscal years 2014 and 2015 because they were never authorized by an applicable Act as needed by law.