PUBLIC DEBT: The Ksh 8,470,377,843,000.

00/-

As of April 2022, the outstanding public debts publicised by Central Bank of Kenya was
Ksh. 8,470,377,843,000.00. This amount comprised of:

Period Public Debt incurred Ksh. Comment

June 2014 2,370,255,820,000.00 This was the end of the budget prepared by Kibaki

April 2022 6,100,122,023,000.00 Uhuru’s Public debt

What is public debt?

Public debt as provided under Article 214(2) of the Constitution of Kenya means all
financial obligations attendant to loans raised or guaranteed and securities issued or
guaranteed by the national government.

1. Public Debt is anchored in the budget.

The budget is provided under Article 220(1) of the constitution of Kenya which states
that: Budgets of the national and county governments shall contain—
(a) estimates of revenue and expenditure, differentiating between recurrent and
development expenditure.
(b) proposals for financing any anticipated deficit for the period to which they apply;
and
(c) proposals regarding borrowing and other forms of public liability that will increase
public debt during the following year.

In simple terms public debt is in the budget and the budget is in two forms:

1. Budget for Development: This is where all money for development projects is
allocated (Development Appropriations act). This is funded through Taxes, grants, and
Loans (debt).
• section 15(2) of the Public Finance Management (PFM) Act 2012 provide that
“over the medium term, the national government’s borrowings shall be used only for
financing development expenditure and not for recurrent expenditure”.
• section 50(3) of Public Finance Management Act, 2012 provide that, “the national
government may borrow money only for the budget as approved by Parliament and the
allocations for loans approved by Parliament”.

2. Budget for Recurrent: This is where all the moneys for repayment of loans are
allocated (Recurrent Appropriations act). This is funded through Taxes only.
Why do we incur public debts?

We incur debts to finance development projects! For the eight financial years,
2014/2015 to 2021/2022 the development projects budgeted totalled to Ksh.
5,362,366,308,605 which were financed through tax revenue and grants totalling to
Ksh. 3,361,204,649,773.00, and debt totalling to Ksh. 2,001,161,658,832.00 authorised
under the respective Appropriation Acts of 2014/2014 to 2021/2022 financial years.
The table below shows the development budget for every financial year.

Table 1
Amount approved by respective Appropriation Act
(Development Vote) and Sources of Finance
No. Financial Years F/YR Approved development Amount financed by Tax Amount financed by Debt
budget expenditure Revenue and grants
estimates (projects)
1. 2014/2015 494,892,120,733 358,507,118,798.00 136,385,001,935.00

2. 2015/2016 721,288,541,960 440,418,948,724.00 280,869,593,236.00

3. 2016/2017 820,161,449,551 471,905,309,201.00 348,256,140,350.00

4. 2017/2018 642,897,327,706 438,630,011,332.00 204,267,316,374.00

1st Term 2,679,239,439,950.00 1,709,461,388,055 969,778.051,895.00

5. 2018/2019 677,225,634,213.00 430,408,353,462.00 246,817,280,751.00
6. 2019/2020 704,213,809,308.00 443,517,981,026.00 260,695,828,282.00
7. 2020/2021 633,308,563,243.00 382,969,235,979.00 250,339,327,264.00
8. 2021/2022 668,378,861,891.00 394,847,691,251.00 273,531,170,640.00
2nd Term 2,683,126,868,655.00 1,651,743,261,718.00 1,031,383,606,937.00
Total 5,362,366,308,605.00 3,361,204,649,773.00 2,001,161,658,832.00

*Tax Revenue totalled Ksh. 2,978,611,786,799.00

*Grants totalled Ksh. 382,592,862,974.00

The Table shows the gross expenditure estimates (Appropriation Acts) for
development projects totalling to Ksh. 5,362,366,308,605 and the source of finances
for the development projects which comprised of tax revenue totalling to Ksh.
2,978,611,786,799.00, grants totalling 382,592,862,974.00 and debt totalling to Ksh.
2,001,161,658,832.00. These were the amount authorised by the Presidential warrants
to be withdrawn from the consolidated fund for the eight financial years; 2014/2015 to
2021/2022 to pay for the development projects.
Bar graph 1

The graph shows the gross development expenditure estimates against the amount
financed by tax revenue and amount financed by external debts

As a Kenyan If I want to know the debt of my Country, where do I go?

Article 206. (1) of the Constitution of Kenya state that there is established the
Consolidated Fund into which shall be paid all money raised or received by or on behalf
of the national government.

Who hosts the consolidated fund?

The Public Finance Management Act section 17. (1) The National Treasury shall
administer the Consolidated Fund in accordance with Article 206 of the Constitution.
(2) The National Treasury shall maintain the Consolidated Fund in an account to be
known as the National Exchequer Account, kept at the Central Bank of Kenya and
shall, subject to Article 206(1) of the Constitution—
(a) facilitate payment into that account all money raised or received by or on behalf
of the national government; and
(b) pay from that National Exchequer Account without undue delay all amounts that
are payable for public services.

The CBK publicises the public debts on their website monthly.

ENABLERS OF THE UNAUTHORIZED PUBLIC DEBTS
1. AMENDEMENT OF THE CONSTITUTION OF KENYA 2010 THROUGH AMENDING
PFM ACT 2012
Unauthorized loans were made possible through amendment of the constitutional
requirement under Article 206(1) of the 2010 Constitution of Kenya that require all
receipt from loan money be paid into the consolidated fund by the 2014 amendment of
the Public Finance Management Act, 2012. The amendment of the PFM Act introduced
two exceptions not provided for under Article 206 of the 2010 constitution of Kenya
2010

CONSISTENCY;
Article 206 of the
2010 Constitution Article 2(4) of the
of Kenya Constitution of Kenya
2010 provides that:
(4) “Any law, including
206. (1) There is established the Consolidated Fund into which shall be paid customary law, that
all money raised or received by or on behalf of the national government, is inconsistent with
except money that— this Constitution is
(a) Is reasonably excluded from the Fund by an Act of Parliament and void to the extent of
payable into another public fund established for a specific purpose: or the inconsistency, and
(b) May, under an Act of Parliament, be retained by the State organ that any act or omission in
received it for the purpose of defraying the expenses of the State organ. contravention of this
Constitution is invalid”.

INCONSISTENCIES;
Amended Public Finance
Exceptions (c)&(d) were not Management (PFM) Act 2014
provided for under Article 206 of
the constitution of Kenya 2010 and
hence the amendments conflicted
with the Constitution. c) disbursed directly to the suppliers where the loan is
a government-to-government loan and is raised for the
purpose of financing goods and services provided by a
Original supplier outside Kenya
Public Finance (d) in the case of an external loan or external
Management (PFM) government security, applied, in part, to pay at
Act 2012 closing, pre-negotiated expenses associated solely
and exhaustively ‘with the borrowing, including but
provided that, “The Cabinet Secretary not limited to, the fees, commissions and expenses
shall ensure that the proceeds of any of lenders, financial arrangers, managers and book
loan raised under this Act are paid into runners, fiscal agents, trustees, paying agents,
the Consolidated Fund or into any other exchange and information agents, syndicate agents,
public fund established by the national counsel, clearing systems, listing agents, and stock
government or any of its entities as exchanges, rating agencies and other expenses of
Cabinet Secretary may determine in a similar nature arising from the external loan or
accordance with regulations approved external government security.”
by Parliament”
Table 2

Publicised public debt data by Central Bank of Kenya VS the Authorised public debt by the Appropriation Acts.

Financial Years Public Debt as per CBK Data Public Debt authorised by The amount of Public Debt not
Appropriation Act authorised by the Appropriation Act
2014/2015 458,802,150,000.00 136,385,001,935.00 322,417,148,065.00
2015/2016 789,668,830,000.00 280,869,593,236.00 508,799,236,764.00
2016/2017 787,719,520,000.00 348,256,140,350.00 439,463,379,650.00
2017/2018 632,588,200,000.00 204,267,316,374.00 428,320,883,626.00

1St Term 2,668,778,700,000.00 969,778,051,895.00 1,699,000,648,105.00

2018/2019 769,588,080,000.00 246,817,280,751.00 522,770,799,249.00

2019/2020 885,609,460,000.00 260,695,828,282.00 624,913,631,718.00
2020/2021 1,018,160,510,000.00 250,339,327,264.00 767,821,182,736.00
2021/2022 757,985,276,000.00 273,531,170,640.00 484,454,105,360.00
2nd Term 3,431,343,326,000.00 1,031,383,606,937.00 2,399,959,719,063.00
Total 6,100,122,026,000.00 2,001,161,658,832.00 4,098,960,367,168.00

The table shows Ksh. 4,098,960,367,168.00 debt were not authorised by the
Appropriation Acts; Hence, the debts were borrowed outside the public financial
management system falling thus short of being public debt.

Bar Graph 2

The graph shows the public debt as per CBK data against the public debt authorised by
the Appropriation Acts and the over borrowings.
Appropriation Acts (Gross development expenditure estimates) VS Public debt as per
CBK data.

Table 3
Financial Years Public Debt as per CBK Data Gross Estimates as per Public debt over/under
Appropriation Acts budgeted projects
2014/2015 458,802,150,000.00 494,892,120,733.00 -36,089,970,733.00
2015/2016 789,668,830,000.00 721,288,541,960.00 68,380,288,040.00
2016/2017 787,719,520,000.00 820,161,449,551.00 -32,441,929,551.00
2017/2018 632,588,200,000.00 642,897,327,706.00 -10,309,127,706.00
1st Term 2,668,778,700,000.00 2,679,239,439,950.00 -10,460,739,950.00
2018/2019 769,588,080,000.00 677,225,634,213.00 92,362,445,787.00
2019/2020 885,609,460,000.00 704,213,809,308.00 181,395,650,692.00
2020/2021 1,018,160,510,000.00 633,308,563,243.00 384,851,946,757.00
2021/2022 757,985,276,000.00 668,378,861,891.00 89,606,414,109.00
2nd Term 3,431,343,326,000.00 2,683,126,868,655.00 748,216,457,345.00
Total 6,100,122,026,000.00 5,362,366,308,605.00 737,755,717,395.00
add tax revenue & grants 3,361,204,649,773.00
unauthorised debt 4,098,960,367,168.00

Graph 3

The graph shows the public debt as per CBK data against the gross expenditure estimates
captured under Appropriation Acts.
Table 4
Domestic debt as per CBK data VS Domestic debt as per Appropriation Acts

Financial year Unauthorised Domestic debt as per Domestic debt as per the Public Debt authorised by
CBK data Appropriation Act Appropriation Act External
debt
2014/2015 136,117,130,000.00 0.00 136,385,001,935.00

2015/2016 395,026,120,000.00 0.00 280,869,593,236.00

2016/2017 296,239,940,000.00 0.00 348,256,140,350.00

2017/2018 367,124,650,000.00 0.00 204,267,316,374.00

1St Term 1,194,507,840,000.00 0.00 969,778.051,895.00

2018/2019 306,648,040,000.00 0.00 246,817,280,751.00

2019/2020 392,938,150,000.00 0.00 260,695,828,282.00

2020/2021 518,671,900,000.00 0.00 250,339,327,264.00

2021/2022 528,750,226,000.00 0.00 273,531,170,640.00

2nd Term 1,747,008,316,000.00 0.00 1,031,383,606,937.00

Total 2,941,516,156,000.00 0.00 2,001,161,658,832.00

This table shows domestic debts as per CBK data totalling Ksh. 2,941,516,156,000.00
whereas there were no debts authorised under the Appropriation Acts.

Graph 4

The graph shows domestic debts as per CBK data against Appropriation Acts (No
domestic debt authorised under the Appropriation Acts).
Table 5

The External Debt as per CBK VS External Debt as per Appropriation Acts

Financial Years CBK external public debt Public Debt authorised by Unauthorised External Public
Appropriation Act External debt Debt

2014/2015 322,685,020,000.00 136,385,001,935.00 186,300,018,065.00

2015/2016 394,642,710,000.00 280,869,593,236.00 113,773,116,764.00

2016/2017 491,479,580,000.00 348,256,140,350.00 143,223,439,650.00

2017/2018 265,463,550,000.00 204,267,316,374.00 61,196,233,626.00

1st Term 1,474,270,860,000.00 969,778.051,895.00 504,492,808,105.00

2018/2019 462,940,040,000.00 246,817,280,751.00 216,122,759,249.00

2019/2020 492,671,310,000.00 260,695,828,282.00 231,975,481,718.00

2020/2021 499,488,600,000.00 250,339,327,264.00 249,149,272,736.00

2021/2022 886,122,290,000.00 273,531,170,640.00 612,591,119,360.00

2nd Term 2,341,222,240,000.00 1,031,383,606,937.00 1,309,838,633,063.00

Total 3,815,493,100,000.00 2,001,161,658,832.00 1,814,331,441,168.00

The Table shows unauthorised external debts Ksh. 1,814,331,441,168.00 which cannot
be linked to the budgeted projects

Graph 5
PART TWO

How is our Public Debt paid?

The Public debt are paid from Tax revenue which is budgeted under Recurrent
Appropriation Act (Budget).

The constitution of Kenya Article 214(1) provide that the public debt is a charge on the
Consolidated Fund, but an Act of Parliament may provide for charging all or part of the
public debt to other public funds.

Section 50(6) of the PFM Act 2012 provide that A public debt incurred by the national
government is a charge on the Consolidated Fund, unless the Cabinet Secretary
determines, by regulations approved by Parliament, that all or part of the public debt
is a charge on another public fund established by the national government or any of its
entities.

Regulation 112(1) of the PFM Regulations 2015 provide where the Constitution or
an Act of Parliament provides for some specific categories of expenditure to be a
direct charge on the Consolidated Fund, such expenditures shall be included in the
recurrent budget estimates of the national government as part of the Consolidated
Fund Services.

(2) the Consolidated Fund Services shall be provided for in the recurrent estimates
but shall not be subject to Parliamentary debate nor to the expenditure limited by
estimates nor vote on account.

Public Finance Regulations 2015, regulation 21:

21(1) Once the Annual Appropriation Bill or Supplementary Bill has been assented
to, the Cabinet Secretary shall obtain presidential warrants authorizing issues from
the Consolidated Fund in accordance with the respective Appropriation Acts.

(2) The Presidential Warrants in paragraph (1) of this regulation shall be transmitted
to the Controller of Budget by the Cabinet Secretary to authorize withdrawals in
accordance with Article 228 of the Constitution.
Table 1.
Recurrent Appropriation Act allocations for repayment of public debt VS public debt as per CBK data
Financial Years Recurrent expenditure authorised Public Debt as per CBK Data Balance of Public Debt
by the Appropriation Act for
repayment of public debt
2014/2015 399,310,622,509.00 458,802,150,000.00 -59,491,527,491.00
2015/2016 397,035,494,249.00 789,668,830,000.00 -392,633,335,751.00
2016/2017 466,514,040,169.00 787,719,520,000.00 -321,205,479,831.00
2017/2018 649,396,727,245.00 632,588,200,000.00 16,808,527,245.00
1st Term 1,912,256,884,172.00 2,668,778,700,000.00 -756,521,815,828.00
2018/2019 870,615,957,746.00 769,588,080,000.00 101,027,877,746.00
2019/2020 768,847,893,016.00 885,609,460,000.00 -116,761,566,984.00
2020/2021 904,703,671,211.00 1,018,160,510,000.00 -113,456,838,789.00
2021/2022 1,169,165,030,917.00 757,985,276,000.00 674,817,890,917.00
2nd Term 3,713,332,552,890.00 3,431,343,326,000.00 545,627,362,890.00
Total 5,625,589,437,062.00 6,100,122,026,000.00 -474,532,588,938.00

Kibaki’s Outstanding public debt brought forward -2,370,255,820,000.00

This what should be outstanding debt balance -2,844,788,408,938.00
*Although CBK publicised debt is Ksh. 8,470,377,843,000.00 as at April 2022.

The table shows that the public debt expenditure totalling Ksh. 5,625,589,437,062.00
was set aside in the Recurrent Appropriation Acts to repay public debt as per CBK data
(which includes unauthorised debt) totalling Ksh. 6,100,122,026,000.00. The allocation
would have covered the public debt as per CBK data including outstanding public debt
brought forward as of June 2014 amounting to Ksh. 2,370,255,820,000.00 leaving
outstanding debt totalling Ksh. 2,844,788,408,938.00.

Graph 1
The graph shows the amount allocated for payment of debt against the amount of debt
as per CBK public debt data.

Table 2

Recurrent Appropriation Act (Budget) allocations for repayment of public debt VS Authorised public debt as per
Development Appropriation Acts

Financial Years Recurrent expenditure authorised Public Debt authorised by Credit Balance
by the Appropriation Acts for Appropriation Act
repayment of public debt
2014/2015 399,310,622,509.00 136,385,001,935.00 262,925,620,574.00
2015/2016 397,035,494,249.00 280,869,593,236.00 116,165,901,013.00
2016/2017 466,514,040,169.00 348,256,140,350.00 118,257,899,819.00
2017/2018 649,396,727,245.00 204,267,316,374.00 445,129,410,871.00
1st Term 1,912,256,884,172.00 969,778,051,895.00 942,478,832,277.00
2018/2019 870,615,957,746.00 246,817,280,751.00 623,798,676,995.00
2019/2020 768,847,893,016.00 260,695,828,282.00 508,152,064,734.00
2020/2021 904,703,671,211.00 250,339,327,264.00 654,364,343,947.00
2021/2022 1,169,165,030,917.00 273,531,170,640.00 895,633,860,277.00
2nd Term 3,713,332,552,890.00 1,031,383,606,937.00 2,681,948,945,953.00
Total 5,625,589,437,062.00 2,001,161,658,832.00 3,624,427,778,230.00

Kibaki’s Debt as at June 2014 (2,370,255,820,000.00)

Credit Balance 1,254,171,958,230.00

The table shows that public debt expenditure totalling Ksh. 5,625,589,437,062.00 was
set aside in the Recurrent Appropriation Acts to repay public debt authorised by the
Development Appropriation Acts totalling Ksh. 2,001,161,658,832.00. The allocation
would have covered the authorised public debt and the outstanding public debt brought
forward as of June 2014 amounting to Ksh. 2,370,255,820,000 leaving credit balance of
Ksh. 1,254,171,958,230.00. There was no need of incurring debts since the tax revenue
of Ksh. 5,625,589,437,062.00 set aside for repayment of the public debts was sufficient
to finance the budgeted projects.

In reference to table 2 above, presidential warrants were issued to withdraw Ksh.

5,625,589,437,062.00 to pay debts of Ksh. 2,001,161,658,832.00.
Graph 2

The graph shows the amount allocated for payment of debt against the amount of debt
authorised under the Appropriation Act

How the Ksh. 5.6 Trillion tax revenue was Spent?

As was indicated earlier public debt is a direct charge on the consolidated funds
services. The recurrent Appropriation Acts for the respective financial years, 2014/2015
to 2021/2022 recorded the utilization of the Ksh. 5,661,416,224,190.00 as shown in the
table below:

Table 3.
Type of Debt Repayment of principal in Ksh. Interest in Ksh. Total in Ksh.
Domestic 1,833,121,856,768.00 2,111,593,520,862.00 3,944,715,377,630.00
External 1,022,063,638,168.00 694,637,208,392.00 1,716,700,846,560.00
Total 2,855,185,494,936.00 2,806,230,729,254.00 5,661,416,224,190.00

A total of 3,944,715,377,630.00 were payments purportedly on domestic debts.

The Appropriation Acts of 2014/2015 to 2021/2022 had not authorised incurring of
domestic debts

That upon analysis of the Recurrent Appropriation Acts for 2014/2015 to 2021/2022,
the report established that Ksh. 5,661,416,224,190.00 were spent on public debt
repayment and public debts interest, whereby, Ksh. 3,944,715,377,630.00 was utilised
in domestic debts and 1,716,700,846,560.00 in external debts. Payments were as
follows: (PTO)
Table 4

External debt repayment and interests

Financial year Public debts Repayment Public debts Interests Repayment plus interest
as per Recurrent as per Recurrent
Appropriation Act Appropriation Act
2014/2015 81,936,728,217.00 29,737,725,050.00 111,674,453,267.00
2015/2016 34,688,666,820.00 30,510,020,204.00 65,198,687,024.00
2016/2017 43,622,575,368.00 53,520,419,000.00 97,142,994,368.00
2017/2018 150,282,374,736.00 89,819,138,249.00 240,101,512,985.00
1st Term 310,530,345,141.00 203,587,302,503.00 514,117,647,644.00
2018/2019 250,282,533,759.00 114,374,401,663.00 364,656,935,422.00
2019/2020 121,477,303,081.00 131,867,724,005.00 253,345,027,086.00
2020/2021 137,707,382,229.00 118,748,392,079.00 256,455,774,308.00
2021/2022 202,066,073,958.00 126,059,388,142.00 328,125,462,100.00
2nd Term 711,533,293,027.00 491,049,905,889.00 1,202,583,198,916.00
Total 1,022,063,638,168.00 694,637,208,392.00 1,716,700,846,560.00

Graph 4
Table 5
Domestic debts repayments and interests
Financial year Domestic public debts Domestic public Repayments plus
Repayments as per Recurrent debts Interests Interests
Appropriation Act as per Recurrent
Appropriation Act
2014/2015 150,000,900,000.00 137,635,269,242.00 287,636,169,242.00
2015/2016 177,021,949,920.00 154,814,857,306.00 331,836,807,226.00
2016/2017 172,104,225,000.00 197,266,820,801.00 369,371,045,801.00
2017/2018 194,052,522,032.00 215,242,692,228.00 409,295,214,260.00
1st Term 693,179,596,952.00 704,959,639,577.00 1,398,139,236,529.00
2018/2019 220,352,450,865.00 285,606,571,459.00 505,959,022,324.00
2019/2020 213,690,535,723.00 301,812,330,207.00 515,502,865,930.00
2020/2021 361,955,031,754.00 339,992,184,560.00 701,947,216,314.00
2021/2022 343,944,241,474.00 479,222,795,059.00 823,167,036,533.00
2nd Term 1,139,942,259,816.00 1,406,633,881,285.00 2,546,576,141,101.00
Total 1,833,121,856,768.00 2,111,593,520,862.00 3,944,715,377,630.00
Add external debt repayments 1,716,700,846,560.00
Total repayments 5,661,416,224,190.00

Graph 5
What are the key findings of this debt Fraud investigation report?

1. There is no outstanding public debts. Therefore, the figure Ksh. 8,470,377,843,000.00

publicised by CBK as outstanding debt is fictitious.

2. A concealed fraud/heist of Ksh. 9,724,549,801,230.00 (8,470,377,843,000.00

+ 1,254,171,958,230.00) through public debt. This is consistent with Parliament
fraudulently raising public debt to Ksh 10trillion

3. Public debt turned into a Ponzi scheme to steal tax revenue

4. Unconstitutional amendment of the Constitution (Articles 206(1)) by illegally

amending public finance management Act, 2012 Section 50(7) to facilitate and enable
the fraud

5. Domestic debt is borrowed without authority and appropriation by parliament and

that was no projects linked to the debt

6. There is no debt to be paid contrary to CBK publicised debt figures.