Jun 13, 2021

Mawazo Writing Africa

Writing about the main

Kenya and EAC sued over $2.34b IMF loan

Kenya’s Attorney General Kihara Kariuki and EAC Secretary General Peter Mathuki were named as the first and second suspects, respectively, in a case brought by two Kenyan organizations to the East African Court of Justice.

In an application to the EACJ The Peasants League Ltd Company (PLLC) and the Kenya Abolition Debt Network (KABN) have sued the government and the East African Community over Kenya’s International Monetary Union loans.

Kenya is charged with non-compliance with the national debt ceiling as set out in The EAC Monetary Union in its decision to borrow 2.34 billion Ksh (255.9 billion Ksh) from the IMF in April.

Through Lumumba and Ayieko Advocates, the two organizations have accused Kenya of in violation of its own national laws, the EAC Treaty and the Monetary Union Protocol, continue to borrow beyond the EAC’s specified national debt ceiling.

< They say that there are still loans from the IMF, Kenya has violated Article 9 of the EAC Monetary Union Protocol by failing to adjust its net funding to the national debt ceiling set in the EAC Monetary Union Protocol.

The two Organizations now want the EACJ to commit Kenya to the EAC treaty and the EAC Monetary Union Protocol to manage the debt. Ksh 9 billion) from the IMF, “said Dick Omondi Olela, the PLLC’s national convener.

PLLC is a Kenyan company that brings smallholders and consumers together to promote agroecology, food sovereignty, climate justice and fair trade Promote.

In a joint application Olela and David Calleb Otieno, the national coordinating body of KABN, an NGO that works to eradicate illegal, illegitimate, unsustainable and hideous debt, accuse Kenya of not meeting its public limit in its public finance management laws to those of the EAC Monetary Union.

They argue: “Kenya has continued to blatantly violate Article 9 of the Monetary Union Protocol by not referring to the Council on a quarterly basis disclosed and / or failed to disclose the full level of its domestic and foreign debt, including its publicly guaranteed debt, thereby depriving the Community of the benefit of its implementation of the macroeconomic convergence criteria. “

” Kenya is a party to the EAC Treaty and the EAC Monetary Union Protocol are bound by the aims and purposes of the treaty and cannot use its local law to defeat or thwart the aims of the EAC Monetary Union, “said Otieno.

” The total government debt was around 65.8 percent of GDP in fiscal 2019/2021 and is estimated to reach 70.4 percent of GDP by the end of the fiscal year 2020/2021, ”said Olela.

They are requesting an order compelling Kenya to disclose to the council its status of its domestic and external debt, including its publicly guaranteed debt, on a quarterly basis. .

They also want the cost of the case to be borne by Kenya and the EAC