Omtatah questions Kenya’s borrowing powers, calls for constitutional scrutiny

Busia Senator Okiya Omtatah has raised concerns over Kenya's borrowing powers, urging a constitutional examination of who holds the authority to commit the nation to public debt. In a recent statement, Omtatah argued that the real danger of public debt is not the amount borrowed, but the constitutional power to bind future generations.

The senator's concerns arise as Kenya grapples with rising public debt, budget deficits, and debt servicing costs. Kenya's public debt has surpassed Ksh13 trillion, including both domestic borrowing and external loans. Omtatah contends that the government's reliance on borrowing to finance budget deficits highlights the need for a constitutional review of public debt management.

Article 211 of the Constitution grants Parliament the power to prescribe terms for the national government's borrowing, while Article 220 requires the inclusion of borrowing estimates in the budget process. Omtatah's document focuses on these articles, emphasizing that they provide the legal framework for borrowing and require disclosure of anticipated borrowing.

He argues that the Executive's role in borrowing should remain within the legal framework established by Parliament, but questions whether the Public Finance Management Act grants the Executive more power than it should possess. Omtatah's argument suggests that the Constitution should play a more significant role in guiding Kenya's borrowing practices to ensure accountability and long-term sustainability.