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Post Reply: High Court Refers Okiya Omtatah’s Odious Debts Petition to Chief Justice for Multi-Judge Bench

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on June 20, 2025, 9:00 am</div><div id="pl-6508"  class="panel-layout" ><div id="pg-6508-0"  class="panel-grid panel-no-style" ><div id="pgc-6508-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-6508-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;,&quot;background_image_size&quot;:&quot;full&quot;,&quot;background_image_opacity&quot;:&quot;100&quot;,&quot;border_thickness&quot;:&quot;1px&quot;}" ><div
			
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	<p dir="ltr" data-pm-slice="0 0 []">In a significant development in Kenya’s ongoing battle over public debt transparency, the High Court has referred a petition led by Busia Senator Okiya Omtatah to Chief Justice Martha Koome for the empanelment of a multi-judge bench. The petition, which challenges the legality of Kenya’s mounting public debt, alleges unconstitutional borrowing practices and financial mismanagement by past and present administrations. The referral underscores the case’s complexity and its far-reaching implications for Kenya’s economic governance.</p>
<p dir="ltr">The petition, filed by Senator Omtatah alongside Dr. Magare Gikenyi, activist Eliud Matindi, and six other petitioners, accuses the Executive of engaging in rampant and unconstitutional borrowing that risks plunging the country into a severe debt crisis. The petitioners are seeking a court order to halt President William Ruto’s administration from incurring new loans or repaying debts not authorized within the national budget. They argue that Kenya’s public debt, which reportedly escalated from Sh2.37 trillion in 2014 to Sh8.57 trillion by 2022 under former President Uhuru Kenyatta’s administration, includes “odious debts” – loans incurred without public consent and which fail to benefit the Kenyan populace.</p>
<p dir="ltr">In a notable twist, the Central Bank of Kenya (CBK) has thrown its weight behind Omtatah’s petition. On June 4, 2025, the CBK, through court filings, affirmed that the petition raises “substantial constitutional questions” regarding illegal borrowing, debt mismanagement, and public finance abuse. The bank’s support, articulated by Governor Dr. Kamau Thugge, includes a call for a multi-judge bench under Article 165(4) of the Kenyan Constitution to hear the case. “This is a monumental step for accountability and economic liberation,” Omtatah stated, emphasizing the need to address Kenya’s staggering $80 billion public debt.</p>
<p dir="ltr">The CBK’s endorsement has added significant weight to the petition, aligning with growing public discontent over the lack of transparency in Kenya’s fiscal policies. The petitioners allege that funds from Eurobond proceeds were unlawfully diverted to offshore accounts, bypassing the Consolidated Fund and violating constitutional provisions and the Public Finance Management Act.</p>
<p dir="ltr">This petition is a continuation of a legal fight that began in 2015 during former President Uhuru Kenyatta’s administration. The original case faced repeated delays due to procedural objections, which Omtatah described as “technicalities placed like minefields.” On April 24, 2025, Omtatah and his co-petitioners tactically withdrew the 2015 petition and refiled it to circumvent these hurdles, ensuring the case could proceed without further delays. “We withdrew tactically to avoid a cascading disaster of legal technicalities,” Omtatah explained, vowing to pursue the matter vigorously.</p>
<p dir="ltr">The refiled petition seeks clarity on the utilization of Eurobond funds and demands accountability from both the Kenyatta and Ruto administrations. The petitioners also want former senior government officials, including former National Treasury Cabinet Secretary Prof. Njuguna Ndung’u, Controller of Budget Margaret Nyakang’o, and Auditor General Nancy Gathungu, held liable for debts incurred between the 2014/2015 and 2021/2022 financial years. Additionally, they claim that an estimated Sh2.2 trillion borrowed under President Ruto’s administration constitutes odious debt.</p>
<p dir="ltr">The petition has faced resistance from Attorney General Dorcas Oduor, who has argued for its dismissal, citing an ongoing audit of Kenya’s public debt from 1963 to the present. Oduor contends that compelling the government to respond to the petition would interfere with the Auditor General’s investigation and prejudice the audit process. However, the High Court, presided over by Justice Bahati Mwamuye, rejected this argument, certifying the case as raising complex and novel issues that warrant a multi-judge bench.</p>
<p dir="ltr">Justice Mwamuye noted that a related case filed in 2023, also concerning public debt accountability, is pending before a three-judge bench. The overlap in issues further justifies the need for a specialized bench to address the constitutional questions raised by Omtatah’s petition.</p>
<p dir="ltr">The referral to Chief Justice Koome marks a critical juncture in Kenya’s quest for fiscal accountability. The petitioners argue that the dramatic rise in public debt, particularly during the Jubilee regime (2013–2022), was marred by theft and mismanagement of funds borrowed through sovereign bonds, treaties, and financing agreements with international institutions. They assert that Kenyans are being burdened with repaying loans that financed “non-existent development projects,” a claim Omtatah has consistently raised in his public interest litigation.</p>
<p dir="ltr">Omtatah, a seasoned activist and lawmaker known for challenging government policies, has a history of filing high-profile cases. From contesting the Finance Act 2023 to challenging the appointment of judges and police promotions, his legal battles have often spotlighted issues of governance and public finance. This latest petition continues his legacy of advocating for transparency and accountability, resonating with a public increasingly frustrated by Kenya’s debt burden.</p>
<p dir="ltr">The case has sparked widespread discussion on social media platforms, with posts on X reflecting strong public support for Omtatah’s efforts. On June 4, 2025, Omtatah himself posted, “The Central Bank of Kenya (CBK) has officially backed our petition on ODIOUS DEBT… A monumental step in the fight for justice, accountability, and economic liberation for Kenyans.” Other users, including @moneyacademyKE and @dancan_onyango1, echoed this sentiment, emphasizing the need for accountability from both the Kenyatta and Ruto administrations.</p>
<p dir="ltr">As Kenya grapples with a public debt crisis, the outcome of this petition could set a precedent for how the country addresses unconstitutional borrowing and ensures transparency in public finance management. The empanelment of a multi-judge bench by Chief Justice Koome is expected to expedite the hearing process, with Kenyans eagerly awaiting a ruling that could reshape the nation’s economic future.</p>
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