Future Revenue

Sovereign Debt News Update No. 142: Assessing the Security in Securitization - Insights and Questions from Kenya’s Collateralization of Future Revenue

In response to these concerns, Ndegwa is demanding comprehensive accountability and transparency from the government. He is requesting detailed information on all secured levies, the specifics of the loans, the identity of the lenders, and how the funds have been utilized. By raising these issues, Ndegwa is not only questioning the legality of the government’s financial maneuvers but also highlighting a broader debate over whether Kenya's current economic state justifies financially risky strategies that could burden future generations. The scenario underscores the critical need for transparent and responsible financial management in the face of the country’s debt management challenges. Hence, by using private entities and failing to fully disclose the terms of these deals, the government appears to have bypassed key constitutional principles of public finance, accountability, and public participation. This approach burdens future generations with long-term debt and undermines effective oversight, raising serious questions about the integrity of the country's debt management practices.