Imagine waking up to find your neighbor took a loan in your name—without your consent—and now the bank demands repayment from you. That’s exactly what odious debt means for Kenyans.
Odious debt refers to loans taken by a government without public consent, not used for public benefit, and often tainted by corruption. Under international law, such debts should not be enforceable against citizens. Yet, Kenya’s current and past regimes have plunged the nation into a KES 13.1 trillion (USD 100 billion) debt trap, much of which is now being challenged in court as illegal.
The Shocking Scale of Kenya’s Odious Debt
Kenya’s public debt has skyrocketed from KES 2.37 trillion in 2014 to over KES 13.1 trillion today. A staggering KES 6.95 trillion of this debt is considered odious—meaning it was borrowed unlawfully, without parliamentary approval, and with no clear public benefit.
Key Illegal Loans in Question:
- Eurobond Scandal (USD 7.1 billion) – Borrowed between 2014-2021, these funds were allegedly diverted to offshore accounts (JP Morgan & Citibank) instead of Kenya’s Consolidated Fund.
- IMF “On-Lent” Loans (KES 50 billion) – Hidden under IMF disbursements, these loans were not budgeted for and violated Kenyan law.
- Unauthorized Treasury Borrowing (KES 6.54 trillion) – Only KES 2.57 trillion was approved by Parliament; the rest was borrowed illegally.
How Was This Debt Illegally Incurred?
Kenya’s Constitution and Public Finance Management Act (PFMA) require:
✔ Parliamentary approval for all loans
✔ Loans must fund development projects (not recurrent expenses)
✔ All funds must go into the Consolidated Fund (not private accounts)
Yet, the government:
❌ Bypassed Parliament – Borrowed KES 6.54 trillion without approval.
❌ Misused Eurobond funds – Over USD 999 million remains unaccounted for.
❌ Amended PFMA illegally – The 2014 amendment allowed loans to bypass Senate oversight.
The Legal Battle: Okiya Omtatah’s Landmark Petition
In April 2025, Senator Okiya Omtatah filed HCCHRPET E216 of 2025, a historic case seeking to:
- Declare KES 6.95 trillion in debt odious and unenforceable.
- Force former leaders (Uhuru Kenyatta, Ruto’s Treasury) to repay stolen funds.
- Hold the IMF & CBK accountable for enabling illegal borrowing.
Central Bank of Kenya (CBK) Backs the Petition
In a rare move, the CBK supported Omtatah, admitting the debt raises serious constitutional violations. They called for a multi-judge bench to hear the case, signaling its national importance.
Kenyans Are Fighting Back: Protests & Economic Resistance
The debt crisis has sparked massive protests, with citizens rejecting:
- Higher taxes to repay illegal loans
- Police brutality against demonstrators
- Media blackouts (like the June 2025 protest censorship)
2024-2025 Anti-Tax Protests
- 16+ killed, 400+ injured in June 2025 demonstrations.
- Protesters demand debt cancellation, not more taxation.
- The government responded with live bullets & tear gas.
What Happens If Kenya Wins the Odious Debt Case?
If the court rules in favor of Omtatah’s petition:
✅ Billions in debt could be canceled, freeing up funds for healthcare, education.
✅ Former leaders (Uhuru, Ruto’s officials) could be forced to repay stolen funds.
✅ IMF & global lenders may face scrutiny for enabling illegal loans.
But there are risks:
⚠️ Credit downgrades – Kenya may find it harder to borrow in the future.
⚠️ Investor panic – Banks holding gov’t bonds could face losses.
Conclusion: A Fight for Kenya’s Economic Future
Kenya’s odious debt crisis is not just about numbers—it’s about justice, accountability, and survival. With 73% of tax revenue going to debt repayment (instead of hospitals or schools), Kenyans are saying: “We won’t pay for stolen loans!”
The battle is being fought in courtrooms, streets, and global financial corridors. The question remains: Will Kenya break free from this debt trap, or will the cycle of corruption continue?
What can YOU do?
- Stay informed – Follow court case HCCHRPET E216 of 2025.
- Join protests – Demand accountability from leaders.
- Share this article – Expose the truth about Kenya’s odious debt.
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