Kenya's Odious Debt

This website is designed to help all Kenyans understand the Odious Debt petition currently before the court. It breaks down the case in simple language so that everyone can grasp its significance. Since this matter affects us all, we've also included the full case files at the bottom of the page for those who wish to review the petition in detail. This is a public interest case, and as a Kenyan, it’s something that deserves your attention.

KES 6.95T
Odious Debt Claimed
USD 7.1B
Eurobond Debt
73%
Tax Revenue to Debt Service
Debt is not an escape; it is a trap!

What is Odious Debt?

Odious debt is like this:

Simple Analogy

Imagine a family where the father secretly borrows money using the family name. He does not ask the wife or children, and he does not use the money to help the family. He spends it on himself or wastes it.

The Problem

Later, when the lender comes to collect the money, they ask the whole family to pay it back. But the family says, "We never agreed to this loan. It didn't help us. Why should we pay for it?"

Odious debt means loans that were:

  • Never agreed to by the people
  • Did not benefit the people
  • Used wrongly or corruptly by leaders
So, the people say: “We should not be made to pay this bad debt.”

Petition Overview

Core Allegations

The petitions in HCCHRPET E216 of 2025 allege that:

  1. A substantial portion of Kenya’s public debt is “odious”, meaning it was:
    • Borrowed unconstitutionally and unlawfully,
    • Not included in the national budgets (Appropriation Acts) passed by Parliament and signed by the President,
    • Not tied to any development projects as required by law.
  2. These debts remain unpaid and are being repaid from public funds, despite being allegedly incurred through fraud, corruption, and misuse of authority.
  3. The Petitioners state that:
    “Kenya is carrying debt incurred by rulers who borrowed without the people's consent in the national budget (annual Appropriation Act) and used the funds for personal gain.”
  4. The Petitioners seek court intervention to declare these loans invalid, and to hold the responsible individuals personally liable for the unpaid debts.

Unlawful Borrowing

The National Executive borrowed funds unlawfully, bypassing parliamentary approval

Unaccounted Eurobond Funds

Eurobond funds were unaccounted for, not tied to development projects, and not included in Appropriation Acts

Unconstitutional Amendment

The 2014 amendment to the Public Finance Management Act is unconstitutional

Odious Debt Doctrine

Citizens should not bear the burden of repaying loans tainted with corruption

  • The petition challenges the constitutionality and legality of Kenya’s public debt amounting to approximately KES 6.95 trillion incurred between FY2014/2015 and FY2023/2024, including Eurobond proceeds.
  • It alleges violations of multiple constitutional articles and laws including the Public Finance Management Act, Leadership and Integrity Act, Public Officer Ethics Act, and the Fair Administrative Action Act.
  • Key claims include:
    • The National Executive borrowed funds unlawfully, bypassing parliamentary approval.
    • Eurobond funds were unaccounted for, not tied to development projects, and not included in Appropriation Acts.
    • The 2014 amendment to the Public Finance Management Act is unconstitutional for exempting loan revenues from being paid into the Consolidated Fund.
    • Odious debt doctrine applies — claiming citizens should not bear the burden of repaying loans tainted with corruption or incurred without public benefit or authority.

Nature of the case

The petition (HCCHRPET E216 of 2025) filed at the Milimani High Court (Constitution & Human Rights Division) is brought by nine petitioners led by Okiya Omtatah Okoiti against 22 respondents including former President Uhuru Kenyatta, the National Executive, National Treasury officials (current and former), the Auditor General, Controller of Budget, National Assembly, and the International Monetary Fund (IMF), among others. Eleven interested parties are also listed, such as the Law Society of Kenya, Katiba Institute, and Transparency International.

Petitioners

9 Citizens led by Okiya Omtatah Okoiti

Respondents

22 Respondents including former President Uhuru Kenyatta, National Treasury, and IMF

Interested Parties

11 Parties including Law Society of Kenya, Katiba Institute, Transparency International

Debt Analysis

Breakdown of Kenya's borrowing between 2014-2024

Briefly

• Debt in Question: KES 6.95 trillion from FY 2014/15 to 2024/25.
• Targeted Borrowing: All Eurobond loans (USD 7.1 billion) and additional unbudgeted loans.
• Legal Framework Cited: Dozens of provisions from the Constitution, Public Finance Management Act, and other statutes.

Total Borrowed

KES 9.11T

2014-2024 Period

Parliament Approved

KES 2.57T

Via Appropriation Acts

Unauthorized Debt

KES 6.54T

Alleged Odious Debt

Core Allegation: "Odious Debt"

The petition claims that Ksh. 6.95 trillion in debt accumulated between FY 2014/2015 and FY 2023/2024 is unconstitutional and qualifies as odious debt because it was:

Key Allegations

Borrowing Analysis (2014-2024)

Eurobond Debt Timeline

According to the petition, Kenya borrowed a total of USD 7.1 billion through Eurobonds between the financial years 2014/2015 and 2020/2021. The breakdown of these Eurobond issuances is as follows:

Year Amount (USD) Repayment Year(s)
2014 $2.0 billion 2024
2018 $2.0 billion 2028 / 2048
2019 $2.1 billion 2025-2032
2021 $1.0 billion 2034
Total Eurobond Debt: USD 7.1 billion

The petition further states that between the financial years 2014/2015 and 2024/2025, the government borrowed a total of KES 9.11 trillion, while only KES 2.57 trillion was authorized by Parliament through Appropriation Acts. This results in a discrepancy of KES 6.54 trillion in borrowing that was not lawfully approved. The total amount of loans described as odious and unaccounted for in the petition is KES 6,950,163,132,328, covering both the Eurobonds and other concealed loans borrowed outside the national budget process.

Eurobond Budget & Violations

Kenya’s 2014/2015 development budget was fully funded by:

  • Ksh. 307B in tax revenue
  • Ksh. 188B in loans & grants

The Eurobond funds were allegedly:

  • Unbudgeted
  • Misappropriated
  • Missing: Over Ksh. 50B unaccounted

Offshore Violations:
Eurobond proceeds were deposited in JP Morgan Chase and Citibank New York, violating Article 206(1), and exposing the funds to theft.

Auditor General's Findings

  • Proceeds deposited offshore: USD 1.999 billion
  • Legitimate use confirmed: USD 1 billion (loan repayment + projects)
  • USD 999 million unaccounted

Debt Redemption Rollovers: Fraud Claims

Alleged illegal rollovers totaling Ksh. 2.5 trillion, projected to reach Ksh. 4.8 trillion by 2027/2028:

  • Treasury bonds: Ksh. 178.6B
  • Pre-1997 overdrafts: Ksh. 1.11B
  • Treasury bills: Ksh. 200B
  • IMF on-lent loans: Ksh. 10B
  • Tax reserve certificates: Ksh. 300K

Debt Burden & Economic Impact

Odious debt in the trillions

Total Debt

KES 11.5T

Debt Service (2023/24)

KES 1.7T

Tax Revenue

KES 2.1T

Tax Revenue to Debt Service

73%

Tax Revenue to Development

15%

Overpayment by Taxpayers

KES 2.32T

Institutional Failures

National Treasury

Controller of Budget

Auditor General

National Assembly

EACC

Revenue Allocation Breakdown

Legal Challenges to PFMA

Reliefs Sought

What the petitioners are asking the court to do

Odious Debt Declaration

  • Declare KES 6.95T borrowed unconstitutionally as odious
  • Exempt taxpayers from repayment

Invalidation of Eurobond Loans

  • Declare USD 7.1B Eurobond debt as odious
  • Nullify USD 1.458B borrowed in 2024

Personal Liability

  • Surcharge former President Uhuru Kenyatta for KES 4.6T
  • Hold current officials liable for KES 2.25T
  • Compel refunds under Article 226(5)

Legislative Reforms

  • Strike out unconstitutional PFMA provisions
  • Bar further borrowing without parliamentary approval

📄 Attached Documents

🔹Petitions

🔹Exhibits