The National Treasury Cabinet Secretary has been ordered to submit 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, following a ruling by the Machakos Constitutional Court.
Justice Rayella Ollel declared sections of the EADB Act, as amended in 2014, unconstitutional due to insufficient public participation in its formulation.
The court found that Sections 2(1) and 2(2) of the Act, which grant the Treasury CS authority to withdraw funds from the Consolidated Fund without parliamentary oversight, violate constitutional principles of transparency, good governance, and accountability.
The ruling was issued in response to a petition filed in May 2023 by Paul Lihanda, represented by lawyer Gregory Ndege.
The petition sought conservatory orders to halt further disbursements of funds by Treasury CS John Mbadi to EADB. The case named the Central Bank of Kenya, the Auditor General, the Attorney General, and the Treasury CS as respondents.
Beyond ordering the disclosure of financial records, the court directed the Auditor General to conduct a comprehensive audit of all funds withdrawn from the Consolidated Fund for EADB since 2014. The audit report must also be submitted to Parliament within 60 days.
Lihanda argued that the Treasury CS had unlawfully withdrawn public funds without Senate or parliamentary approval, undermining accountability and transparency. The court ruled that his rights had been violated as a result of these actions.
By Citizen Digital