MACHAKOS, Kenya – The Machakos Constitutional Court has ordered the National Treasury Cabinet Secretary, John Mbadi, to submit detailed records of all payments made from the Consolidated Fund to the East African Development Bank (EADB) since 2014.
The documents must be presented to Parliament within 60 days, marking a significant victory for transparency and accountability in public finance management.
Justice Rayella Ollel declared sections of the EADB Act, as amended in 2014, unconstitutional, citing a lack of public participation during its formulation.
Specifically, Sections 2(1) and 2(2) of the Act, which granted the Treasury CS authority to withdraw funds from the Consolidated Fund without parliamentary oversight, were found to violate constitutional principles of transparency, good governance, and accountability.
The ruling came in response to a petition filed in May 2023 by Paul Lihanda, represented by lawyer Gregory Ndege.
Lihanda sought to halt further disbursements of funds by Treasury CS John Mbadi to the EADB, arguing that the withdrawals were made without Senate or parliamentary approval, thereby undermining public accountability.
The court also directed the Auditor General to conduct a comprehensive audit of all funds withdrawn from the Consolidated Fund for the EADB since 2014.
The audit report must be submitted to Parliament within the same 60-day timeframe.
The case named the Central Bank of Kenya, the Auditor General, the Attorney General, and the Treasury CS as respondents.
Lihanda contended that the Treasury CS’s actions violated his constitutional rights, a claim the court upheld in its ruling.
This decision is expected to have far-reaching implications for Kenya’s public finance management, reinforcing the role of parliamentary oversight and public participation in governance.
