The Ethics and Anti-Corruption Commission (EACC) defended its investigation into the high-profile 2014/2015 Eurobond, dismissing allegations from Busia Senator Okiya Omtatah that the government lost or failed to account for billions of shillings.
In a response submitted to the court, EACC investigator Jemimah Githungu stated that the commission conducted a detailed investigation into the possible misuse of about Sh250 billion raised through the sovereign bond.
The affidavit details how investigators meticulously reviewed financial records and documented 56 statements from high-ranking public officials. These witnesses represented key institutions, including the National Treasury, the Central Bank of Kenya, and several other government agencies, as part of the commission’s efforts to verify the flow of funds.
The investigation traced the entire lifecycle of the Eurobond issuance, noting that Kenya raised $2 billion in June 2014 and secured a further $750 million through a tap sale later that year. Authorities initially held these funds in offshore accounts at JP Morgan Chase Bank in New York before transferring the capital to accounts managed by the Central Bank of Kenya.
The EACC maintains that the government followed all necessary procedures throughout the issuance, including the competitive and lawful procurement of lead managers and legal advisers. Furthermore, the commission concluded that the use of offshore accounts remained within legal boundaries, citing amendments to the Public Finance Management Act that grant the government flexibility in managing external loans.
Commission Urges Court to Dismiss Omtatah’s ‘Misleading’ Petition
According to the commission’s findings, the state properly accounted for the net proceeds – totaling approximately Sh196.9 billion after loan repayments – and successfully transferred the funds to the Consolidated Fund.
Following the investigation, the EACC forwarded its findings to the Office of the Director of Public Prosecutions (ODPP). After an independent review of the file in May 2016, the ODPP directed that the matter be closed.
The affidavit further protects the actions of the commission’s former chief executive officer, asserting that he issued public statements in 2015 in good faith and within his official capacity. It clarifies that the Constitution and relevant statutes shield the former CEO from personal liability for his actions during the probe.
Senator Omtatah continues to challenge these findings, seeking court orders to hold officials personally accountable for over Sh4.6 trillion he alleges is linked to the Eurobond.
In response, the EACC dismissed the petition as “misleading and without merit,” maintaining that it fulfilled its constitutional duties without concealing any financial misconduct. The commission urged the court to throw out the case with costs, standing by its conclusion that no evidence of fraud or loss of public funds exists within the Eurobond transactions.
