Tycoon and former presidential aspirant Jimi Wanjigi has lately been vocal over Kenya’s debt crisis even as Kenya’s debt exceeded the 9 trillion mark. Mr Wanjigi opines that most of the debt falls under odious debt and thus Kenyans have no obligation whatsoever to repay the debt.

Odious debt is that debt that was acquired unlawfully and thus the sovereign did not sanction the borrowing or it was borrowed but never benefited the sovereign. The Kenyan laws require that any debt taken by the government must be approved by parliament  and that any borrowing  must be tied to a project.

According to the business mogul who claims to have conducted a forensic audit of Kenya’s debt revealed that the previous regime undertook loans illegally and thus President William Ruto should refuse to pay the debts and set up a commission of inquiry to audit the loans taken in Kenyan’s names without benefiting them.

According to the IMF, under the law in many countries, individuals do not have to repay if others fraudulently borrow in their name, and corporations are not liable for contracts that their chief executive officers or other agents enter into without the authority to bind the corporations.

Citing the Eurobonds which were floated during the first term of the Uhuruto government, the money which was borrowed but not even a single cent found its way to Kenya, the businessman cum politician said that the money never benefited Kenyans and thus just burdening them for no reason.

“They went for Eurobond which is now about Ksh.900 billion, three times; what have they funded? It does not exist!” The businessman further divulged that Kenya has paid all of its debt that was accrued lawfully and in fact the lenders owe Kenyans 1.9 Trillion.

“When Kibaki handed over power to Uhuru, he was paying Ksh.18 of every Ksh.100 to debt. Uhuru handed over a plate to Kenya Kwanza where Ksh.70 of every Ksh.100 is going to debt”

The outspoken politician went on to accuse the Central Bank of Kenya (CBK) leadership over the years of overseeing irregular internal debts in a bid to benefit from the bonds.

According to Wanjigi, banks, being among the lenders, are the primary beneficiaries of many of the State’s loans which end up being burdensome to ordinary citizens. 

“Who are the beneficiaries of these interests? The banks and whoever is marketing these bonds. The most recent bond is at 16 per cent, so you and I are going to borrow at about 20 per cent. What is the Ksh.213 billion funding? It is nowhere in the appropriations. So it is not funding any development…so it is for which consumption?” He posed.