LSK's Faith Odhiambo among 7 appointed to audit public debt

President William Ruto has established a Presidential Taskforce on Forensic Audit of Public Debt, mandated with scrutinising Kenya's debt management practices and ensuring transparency and accountability in public finances.

Faith Odhiambo, the President of the Law Society of Kenya, is among eight members who will be part of the task force, as highlighted in a gazette notice dated July 5, 2024.

"Therefore, I, William Samoei Ruto, President of the Republic of Kenya and Commander-in-Chief of the Defence Forces, in exercise of the powers conferred on me by the Constitution and the Statute Laws of the Republic of Kenya, do hereby order and direct that a Presidential Taskforce on Forensic Audit of Public Debt is hereby established and that the Presidential Taskforce on Forensic Audit of Public Debt shall be constituted," reads the notice.

Members

Nancy Onyango will lead the team as the chairperson, and Luis G. Franceschi will deputise her, along with members such as CPA Philip Kaikai from the Institute of Certified Public Accountants of Kenya (ICPAK), Vincent Kimosop, and Shammah Kiteme from the Institute of Engineers of Kenya.

Others are representatives from ICPAK, LSK, and IEK, while joint secretaries will include Abraham Rugo (Dr.) and Aaron Thegeya.

The task force's mandate includes verifying the current stock of public and publicly guaranteed debt, reconciling loan proceeds with their intended purposes, and assessing the efficiency and cost-effectiveness of projects financed by these loans.

Ruto noted that the task force's role is to evaluate the adequacy of the public finance management framework and recommend improvements. 

"The task force will propose alternative sources of financing for our development needs and develop a debt reorganisation plan to address our current fiscal challenges," reads the notice.

The Central Bank of Kenya. (Photo: File)

It will also regulate its procedures, form sub-committees, and access the necessary information to fulfil its mandate effectively. 

"The task force will also have the necessary powers to regulate its procedures, including the ability to co-opt experts and request and receive any information or document relevant to its investigations," reads the notice.

Location 

The Presidential Taskforce on Forensic Audit of Public Debt will operate from the National Treasury and Economic Planning for an initial period of three months, with provisions for extension if required.

President Ruto also stated that the task force is authorised to consult with various stakeholders, including industry players, regulatory bodies, and government agencies, to gather relevant information and insights.

The task force, based at the National Treasury and Economic Planning, will operate for an initial period of three months, with provisions for an extension if necessary.

It has been granted powers to regulate its procedures, form sub-committees for efficient task execution, and access any relevant information or documents crucial to its investigations.

While addressing the nation earlier from State House, Nairobi President Ruto announced that the audit will provide clarity on the extent and nature of the debt, how public resources have been expended, and recommend proposals for managing the public debt in a sustainable manner.

Ruto said the consequence of withdrawing the Finance Bill 2024, is a reduction of the revenue target by Sh346 billion.

"Over the last few days, our Treasury team has been assessing the impact of either reducing the budget by Sh346 billion in full or borrowing the Sh346 billion in full," he said.

After 90 days, the task force will have served its purpose and report directly to the President.