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Kenya: Public Accounts Committee recommendation on the 2014 Eurobond proceeds

Last checked: 22 October 2026 · Recommendation records

In its report on the national government accounts for 2014/2015, adopted on 29 November 2018, Kenya's Public Accounts Committee recommended that the Auditor-General conclude the investigation into the receipt, accounting and use of the Sovereign Bond (Eurobond) proceeds of Kshs 250,118,014,216.00 and report to Parliament within three months 1. A special audit report was later tabled in the National Assembly, as reported by Moses Njagih of The Standard 2. No Treasury response to the recommendation was found.
Parliament
National Assembly of Kenya, Twelfth Parliament, Second Session 1
Committee
Public Accounts Committee 1
Report
Report on the Examination of the Report of the Auditor-General on the Financial Statements for the National Government for the Financial Year Ended 30th June 2015 1
Adopted
29 November 2018, with amendments 1
Amount in the recommendation
Kshs 250,118,014,216.00 in Sovereign Bond proceeds realised in 2013/2014 1
Proceeds cited by the Auditor-General
USD 1,999,052,872.97 out of USD 2,000,000,000.00 1
Government response
Treasury submission recorded in the report itself 1. No separate published executive response found as of 22 October 2026
Outcome status
Partly implemented. A special audit report was tabled, as reported by The Standard 2

What the Auditor-General reported

The Auditor-General's basis for a disclaimer on the National Exchequer Account cited "proceeds from the Sovereign Bond of USD 1,999,052,872.97 out of the total amount of USD 2,000,000,000.00" 1. The Auditor-General said the funds were "deposited into an offshore account, contrary to Article 206 of the Constitution of Kenya" and cited Section 17(2) of the Public Finance Management Act, 2012 1.

The remaining offshore balance was moved to a Sovereign Bond Deposits Account at the Central Bank of Kenya on 8 September 2014 1. Note 5.5 of the accounts reported net proceeds from commercial financing of Kshs 215,469,626,035.75 for 2014/2015. The Auditor-General said the accuracy of this figure "is yet to be ascertained" 1.

The Treasury's submission to the committee

The report records the Treasury's reply as accounting officer. It said the offshore accounts were opened to receive the proceeds and that "These accounts, as well as the special Sovereign Bond account at CBK, are considered as part of the Consolidated Fund" 1.

The Treasury cited an Attorney General legal opinion and Controller of Budget approval for repaying a syndicated loan. It said the Auditor-General's opinion had changed from the 2013/2014 report without explanation and referred to a statement by the Director of Public Prosecutions that found no evidence of criminality 1.

Committee observations and recommendation

The committee's observations and its recommendation on the Eurobond appear under item 9, National Exchequer Account, on pages 19 and 20 of the adopted report. The recommendation is not numbered in the report 1.

  • Observation (i): "The investigations into the receipts, accounting and use of funds related to the Sovereign/Eurobond are still ongoing." 1
  • Observation (ii): the special audit of the utilisation of the proceeds of Kshs 250,118,014,216.00 had not been concluded and had taken an unusually long time (paraphrased) 1.
  • Recommendation: "The Auditor General concludes the investigations into the receipts, accounting and use of funds" related to the Sovereign/Eurobond proceeds, and submits a progress or final report to Parliament "within (3) three months of adoption of this report" 1.

What happened next

Moses Njagih of The Standard reported that a special audit report by Auditor-General Edward Ouko on the Sh250 billion Eurobond proceeds was tabled in the National Assembly by Majority Leader Aden Duale 2. The page carrying his report shows no publication date 2.

According to that report, the Auditor-General confirmed that the proceeds were received in the National Exchequer Account but could not establish how the money was used. Ouko faulted the National Treasury for not disclosing the development projects financed with the funds 2. The Treasury's reply to the special audit was not visible on the page 2.

In February 2024 the Deputy Auditor-General told the Public Debt and Privatization Committee of concern about Kenya's reliance on Eurobonds, according to a Parliament of Kenya news page 3. That page does not refer to the 2018 recommendation 3.

Outcome status

ItemStatus as of 22 October 2026Source
Auditor-General to conclude the investigationPartly implemented. A special audit report was tabled, as reported 2The Standard 2
Report to Parliament within three months of 29 November 2018Date of tabling not confirmed. No public record found as of 22 October 2026 1,2PAC report 1, The Standard 2
Committee debate of the special auditNo public record found as of 22 October 2026 2The Standard 2

Common questions

Did the PAC find that Eurobond money was stolen?

No. The committee recorded that investigations were ongoing and recommended that the Auditor-General conclude them 1. A recommendation is not a finding of wrongdoing.

How much did Kenya raise in the 2014 Eurobond?

The Auditor-General cited proceeds of USD 1,999,052,872.97 out of USD 2,000,000,000.00 1.

What did the Treasury say?

It said the offshore accounts and the special account at the Central Bank of Kenya form part of the Consolidated Fund 1.

Was the special audit tabled?

Yes, according to The Standard, which reported that Majority Leader Aden Duale tabled it 2.

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Sources

  1. Parliament of Kenya: PAC Report on the Financial Statements for the National Government for 2014/2015, as adopted on 29 November 2018
  2. The Standard: Auditor: Eurobond proceeds came CBK but we cannot trace it to projects, as reported by Moses Njagih (undated page)
  3. Parliament of Kenya: Public Debt and Privatization Committee meets Office of the Auditor-General on the 2024 Medium-Term Debt Management Strategy (22 February 2024)

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