President Ruto Appoints LSK President Faith Odhiambo Among Others to Audit Public Debt

President William Ruto has taken a decisive step to address Kenya's mounting public debt crisis by establishing the Presidential Taskforce on Forensic Audit of Public Debt.

This independent body has been charged with conducting a comprehensive audit of the nation's public debt which has reached an alarming Sh10 trillion - a fivefold increase from a decade ago. The creation of this task force is mandated by Executive Order No. 4 of 2024 and comes at a time when Interest payments on the burgeoning debt have surpassed the National Government's development expenditure. The task force's primary objectives encompass verification, evaluation, and strategic planning. A key focus of the audit will be to verify the current stock of public debt and reconcile loan proceeds with their intended appropriations.

The task force will scrutinize whether loans were used for their designated purposes and assess if the country obtained value for money. Furthermore, it will examine the return on investment and equity, including intergenerational equity considerations. Looking ahead, the committee will explore alternative sources for financing Kenya's development needs in the short and medium term, as well as consider potential debt reorganization plans. The task force is also expected to recommend changes to strengthen governance in public debt management. The eight-member team comprises professionals from various fields with Nancy Onyango serving as chairperson and Prof. Luis G. Franceschi as vice chairperson.

Other members include CPA Philip Kakai, Faith Odhiambo, Eng. Shammah Kiteme, and Vincent Kimosop. Representatives from the Institute of Certified Public Accountants of Kenya and the Law Society of Kenya will also contribute their expertise. Dr Abraham Rugo and Dr Aaron Thegeya have been appointed as Joint Secretaries. The committee will report directly to President Ruto and engage extensively with stakeholders across the public finance sector. Based on the National Treasury and Economic Planning, the audit committee will initially operate for three months with provisions for extension as needed.